Southern Select Corporation Annual Report 2021-22

To: Hon. Stephen Mullighan MP, Treasurer

This annual report will be presented to Parliament to meet the statutory reporting requirements of section 33 of the Public Corporations Act 1993 and regulation 23 of the Public Corporations (Southern Select Super Corporation) Regulations 2012 and the requirements of Premier and Cabinet Circular PC013 Annual Reporting.

This report is verified to be accurate for the purposes of annual reporting to the Parliament of South Australia.

Submitted on behalf of the Southern Select Super Corporation by:

Virginia Deegan, Board Member

It is our pleasure to present our 2021-22 Southern Select Super Corporation Annual Report.

Delivering best member outcomes

Our members are always at the heart of everything we do at Super SA. Through member surveys and feedback we continue to learn more about what our members want. This helps us stay focussed on delivering services aligned to best member outcomes.

Throughout this year, we’re pleased to have delivered the following initiatives for members:

• Launched an award-winning website that is responsive, more secure and easier to navigate, with access to a range of resources. This includes new calculators, like the Risk Profiler and Super Projection
• Upgraded the member portal to improve navigation. We also added an extra layer of security with two-factor authentication supporting the Fund’s strong focus on cyber and information security
• Removed the investment switching fee on 1 April 2022, meaning investment options can be changed at no cost to members
• Refurbished the Member Centre at 151 Pirie Street, Adelaide giving members who visit us the best possible experience.

Investment Performance

In 2021-22, the result for the Select Balanced (default) investment option was negative 4.5 per cent.

The Financial market environment has been volatile and returns were mostly negative over the year. Investment performance was impacted by:

• the combination of high inflation; tighter monetary policy and aggressive central bank actions; rising risks to economic growth and the possibility of recession; the ongoing Russia-Ukraine conflict; and COVID-19 related lockdowns in China have proven challenging for financial markets
• defensive asset classes such as Fixed Interest produced negative returns as interest rates and credit spreads rose sharply
• global and domestic Equities also produced negative returns as valuations fell in response to interest rate movements. Company earnings have held up to date, however the outlook is uncertain
• unlisted assets such as Property and Diversified Strategies Growth provided positive returns, benefiting from the lagging nature of valuations which have not yet been impacted by rising interest rates.

It's important to remember superannuation is a long-term investment and our investment strategies continue to focus on long-term performance, especially during periods of extreme volatility.

Better super for all Australians

Other industry changes that are a positive step towards helping all Australians reach their superannuation goals, include the increase to the Superannuation Guarantee (SG) from 10 per cent to 10.5 per cent from 1 July 2022.

Looking ahead

From 30 November 2022, the Super SA Select Fund will be Super SA’s offering for eligible members to choose where they direct their super contributions from non-government employment.

Thank you

To all our members, we thank you for your continued support.

I also thank the Board and all Super SA staff for their support and hard work as we move into a competitive environment and are benchmarked against our peers.

 

Signed by:

Overview: about the agency

Our strategic focus
Our organisational structure

• Board Members as at 30 June 2022
• Changes to the agency

Our Minister
Our Executive team
Legislation administered by the agency
Other related agencies (within the Minister's area/s of responsibility)

The agency’s performance

Performance at a glance
Agency response to COVID-19
Agency contribution to whole of Government objectives
Agency specific objectives and performance

Financial performance

Other financial information
Other information

Risk management

Risk and audit at a glance
Fraud detected in the agency
Strategies implemented to control and prevent fraud
Public interest disclosure
Public complaints
Service improvements
Compliance statement

Appendix: Audited financial statements 2021-22

Our strategic focus

Our Purpose 

To act as trustee of Super SA Select in accordance with its obligations under the Public Corporations (Southern Select Super Corporation) Regulations 2012 and administer the trust deed and rules of Super SA Select. 

Our Vision

Our purpose at Super SA is to champion our members' financial wellbeing. 

Our functions, objectives and deliverables

Our strategy is to excel and improve member experience whilst being competitive on fees and returns.

We have two high-level strategic objectives which are supported by strategic themes to ensure Super SA will continue to be a viable and dynamic superannuation fund for South Australia.

High level strategic objectives:

• Net investment returns comparative to Super SA six key competitors
• Fees – in the most cost-efficient quartile of funds

Four strategic themes:

• Member and Employer Engagement – to enhance the member experience to drive engagement, activation and retention
• Future Proofing – Transform the Fund for long-term sustainability
• Competitive Products – to design product / investment options that deliver to member expectations in a competitive environment
• Member Centric Culture – engage employees to deliver an efficient and member centric service.
  

Our organisational structure 


Board Members as at 30 June 2022

The Southern Select Super Corporation has five Board members. They are:

Mr Gregory Boulton AM

Presiding Member (Chairman), Southern Select Super Corporation

Appointed by the Governor until 8 September 2022.

Significant Superannuation and Investment experience as a Trustee Director of Statewide Super for 11 years. Thirty years’ experience as Managing Director, Director and Chairman of Public and Private Companies. Fellow of Australian Institute of Company Directors and Institute of Chartered Accountants.

Chairman of Southern Gold Limited, Director, SA Pine Pty Ltd and Presiding Member, Super SA Board.

Ms Virginia Deegan

Appointed by the Governor until 22 July 2023.

Executive Director Infrastructure, University of Adelaide.

Extensive board and executive management experience across a range of sectors including superannuation, health, and higher education.

A Fellow of CPA Australia (FCPA) and Member of Australian Institute of Company Directors.

Board member of the Super SA Board, Member, SA Health Risk Management and Audit Committee and Director, Stawell Underground Physics Lab Pty Ltd.

Ms Alison Kimber

Member elected representative until 1 October 2024.

Significant board and executive experience in financial markets, superannuation, and community service delivery. More than 30 years’ experience in the finance, government, and not-for-profit sectors.

Fellow of the Australian Institute of Company Directors and Fellow of the Institute of Actuaries of Australia.

Chair, Uniting Care Wesley Bowden; and Councillor, Australian Institute of Company Directors SA/NT and Board Member, Super SA Board, Member, Cabaret Fringe Association Board, member, ACT City Renewal Authority Board and Board member Can Do Group.

Associate Professor William Griggs AM ASM

Member elected representative until 1 October 2024.

Bill Griggs brings to the Board significant leadership and board experience, with expertise in corporate governance, people and culture, superannuation, investment, and insurance. He has a particular interest in managing/coping during times of uncertainty, and in evidence-based decision making.

Current Directorships or equivalent: Director, Funds SA, Director, Return to Work SA; and Board member, Super SA Board, and Board member, St John Ambulance. Fellow of Australian Institute of Company Directors.

Mr Richard Dennis AM PSM

Appointed by the Governor until 22 July 2024. 

Legal practitioner and consultant; South Australian Parliamentary Counsel 2006- 2015

Governor of the Wyatt Trust, Member, Anglican Diocese of Adelaide Legal Committee and Board member, Super SA Board.

All members serve in a part-time capacity.

Board members can attend a variety of national conferences and education seminars. During 2021-22 Board members attended the Association of Superannuation Funds of Australia Conference and Australian Institute of Company Directors – Board’s Role in Setting Culture, Governance Summit and Digital Transformation and the Board.

The Presiding Member attended the Centre for Institutional Investors Chairs and Chief Executives Conference.

Unfortunately, the impact of COVID resulted in some planned conferences being delayed or cancelled.

Attendance at Board and Committee meetings

Name	Select Corporation		Audit, Risk and Finance Committee
	Eligible to attend	Attended	Eligible to attend	Attended
Greg Boulton	8	8	5	5
Virginia Deegan	8	8	5	5
Richard Dennis	8	8	5	5
Bill Griggs	8	7
Alison Kimber	8	8
John Wright			2	2

Changes to the agency

During 2021-22 there were no changes to the agency’s structure and objectives as a result of internal reviews or machinery of government changes.

Our Minister

The Hon. Stephen Mullighan MP is the Treasurer and is the Minister responsible for superannuation.

Our Executive team

Dascia Bennett, Chief Executive

Responsible for leading the organisation and delivering on the Corporation’s strategic agenda whilst ensuring that Super SA meets it legislative and reporting requirements for all superannuation funds managed.

Adrian De Silva, Director, Strategy, People, Product and Transformation

Responsible for providing leadership, management, product and strategic advice across Super SA. This includes accountability for the design and alignment of legacy and new superannuation product offerings to meet member outcomes, as well as providing contemporary human resources and organisational development practices enabling business solutions and oversight of major transformational projects.

Mike Gulliver, Director, Technology and Information Security

Responsible for providing strategic and operational leadership to deliver technology and data services in support of Super SA’s strategy and ongoing benefit for members. This includes responsibility for technology roadmap development, Information Communication Technology (ICT) service delivery model, and cyber security practices aligned to government requirements and APRA Prudential Standards. This role is also accountable for managing contractual ICT service level agreements, budgets, and key relationships with agencies, regulators, and external technology partners.

Lorna Harrison, Director, Operations

Responsible for leading the Operations team to ensure the timely and accurate collection of contributions and member data, payment of benefits, administration of post retirement services and the annual review process for the Funds administered by Super SA. In addition, the role leads the insurance delivery service.

Mark Hordacre, Director, Finance

Responsible for leading the Finance, Actuarial and Procurement group in the design and delivery of sound financial management services for the benefit of our members and relevant agencies. This includes responsibility for the provision of financial and management accounting services to the Schemes and the Board, tax and investment operations for the Schemes, and oversight of the Funds SA operational relationship.

Patrick McAvaney, Director, Policy and Governance

Responsible for the provision of leadership and advice in the areas of legislation, policy, dispute resolution, risk management, compliance and governance practices across Super SA, including its Boards and Committees.

Karen Raffen, Director, Brand and Member Engagement

Responsible for leading the design and implementation of a contemporary Brand, Marketing and Member Experience strategy for the Fund. She is responsible for the areas of member services, financial planning, marketing and member experience. The role also develops business solutions that optimise the Select Corporation’s strategic objectives in relation to maintaining and improving scale through membership retention and growth and enabling members to live their best possible life.

 

Legislation administered by the agency

The Corporation is established and governed pursuant to the Public Corporations (Southern Select Super Corporation) Regulations 2012. The Corporation, as trustee is responsible to the Treasurer for all aspects of the administration of the Public Corporations (Southern Select Super Corporation) Regulations 2012. The Super SA Select is administered pursuant to a trust deed and rules.

The Southern Select Super Corporation Charter has been prepared in accordance with regulation 15 of the Public Corporations (Southern Select Super Corporation) Regulations 2012. The functions of the Corporation are described in Regulation 13.

The Government of South Australia and Commonwealth Government have entered into a Heads of Government Agreement recognises that public sector schemes are exempt from the Commonwealth's Superannuation Industry (Supervision) (SIS) Act 1993. Each scheme is, however, deemed to be a complying fund in terms of the SIS Act, for superannuation guarantee purposes under the Superannuation Guarantee (Administration) Act 1992 and for income tax purposes under the Income Tax Assessment Act 1936. In terms of the Agreement, the government has made a commitment to use best endeavours to ensure that the exempt public sector schemes conform to the principles of the Commonwealth's retirement income policy objectives.

 

Other related agencies (within the Minister's area/s of responsibility)

Super SA

On behalf of the Corporation, the State Superannuation Office (Super SA) is responsible for administering Super SA Select in accordance with its trust deed and rules.

This arises from the Public Corporations (Southern Select Super Corporation) Regulations 2012, which enables the Corporation to make use of the staff or facilities of an administrative unit of the SA Public Sector, with the approval of the Minister of that administrative unit. Super SA, a branch of the Department of Treasury and Finance, provides administrative services to the Corporation.

The annual budget for the operation of Super SA is presented to the Corporation for its approval. In determining the budget, a management plan for the provision of services is prepared each financial year.

The Corporation's service level contract with the Chief Executive of the Department of Treasury and Finance sets out specific performance standards. The contract expires on 17 December 2022.

The use of consultants, contractors, WHS reporting and executive employment statistics are included in the Department of Treasury and Finance's Annual Report.

 

Funds SA

In accordance with the Public Corporations (Southern Select Super Corporation) Regulations 2012, the Corporation is responsible for the investment and management of the fund and must prepare an investment policy statement and set the risk/returns objectives and asset allocation policies to be adopted. In fulfilling these obligations, the Corporation consults with the Superannuation Funds Management Corporation of South Australia (Funds SA). Funds SA implements the Corporation's investment policy statement and strategies as agent.

Funds SA prepares an annual Performance Plan, which outlines planned initiatives and proposed strategies.

The current Memorandum of Agreement between Funds SA and Super SA was executed in February 2022. Funds SA provides this service under legislation. The agreement is reviewed on a three yearly basis or when a significant change occurs.

Performance at a glance

Super SA performance is assessed continuously against the agency's key objectives every quarter. This will ensure the projects and initiatives conducted through the year are aligned to meet the key objectives.

In delivering our member-centric approach we have:

• commenced the roll out of upgraded website calculators
• developed a web-chat functionality for members
• redesigned the website which has been award winning and is more secure and easier for our members to navigate
• recruited Business Relationship Managers as employer touch points as we move to Fund Selection in 2022-23.

Super SA is aligning itself with the Australian Prudential Regulatory Authority (APRA) standards, where possible. The Heads of Government Agreement requires that we use a best endeavours approach to do so. In striving to achieve this we have:

• commenced the development of a Superannuation Prudential Standard (SPS) 515 framework for Strategic Planning and Best Member outcomes, and implemented changes to the budgeting and business planning and business case preparation
• delivered important system changes to support:
- Protecting Your Super that addresses account erosion due to excessive fees or unnecessary insurance
- SuperStream Rollover upgrade to meet ATO requirements
• commenced development of a cyber security strategy in line with Australian Prudential Regulation Authority CPS 234 Information Security and CPS 231 Material Outsourcing
• implemented two-factor authentication for members to access the portal to protect members’ data.

Further information is provided under Agency Objectives.

Agency response to COVID-19

In response to COVID-19 Super SA needed to ensure ongoing services to its members. To ensure staff were able to work remotely when required, new workflow processes were implemented. In response to COVID and member demand Super SA is running regular online education webinars, as well as face to face seminars, which are targeted to specific member needs.

Agency contribution to whole of Government objectives

Key objective	Agency’s contribution
Lower costs	Net investment returns comparative to our key competitors Fees – in the most cost-efficient quartile of funds

Agency specific objectives and performance

Agency objectives	Indicators	Performance
Member and Employer Engagement – to enhance the member experience to drive engagement, activation and retention	Complaints Management	No complaints were received during 2021-22.
Competitive Products – To design product/investments options that deliver to member expectations in a competitive environment	Achieve cost savings through the enhancement of our superannuation registry platform via the transition to a standardised industry platform.	Moved our major superannuation registry system platform onto a modern consolidated code base to enable: future cost savings via a modern digital payment system when SuperStream is implemented improved information security through introduction of two factor authentication.
	Implement a new general ledger platform for the schemes under management and establish an enterprise data warehouse to improve reporting capabilities and efficiencies.	The new general ledger platform was implemented in October 2021, delivering a new modern, stable system that is compliant and provides security assurance. To leverage the new general ledger a new data warehouse was delivered with an enhanced cloud- based data lake being implemented in 2022-23 to provide deep analysis of a member’s journey and service needs.
Member Centric Culture – To engage employees to deliver an efficient and member centric service	Staff Culture Target 70%	This objective was exceeded with 76% achieved as at 30 June 2022.

 

The following is a brief summary of the overall financial position of the Fund. The information is unaudited. Full audited financial statements for 2021-22 are attached to this report and can be found here.

The value of total assets under management at 30 June 2022 was $48.94 million, which was $15.6 million more than the $33.3 million as at 30 June 2021.

Other financial information

Super SA Select had 125 members at 30 June 2022, consisting of 100 active members and 25 retained members (2021 membership: 97 active and 22 retained).

Member balances at 30 June 2021 were $48.4 million, compared with $29.6 million at 30 June 2021.

Other information

In establishing Super SA Select, the Southern Australian Superannuation Board agreed to provide funding of up to $500,000 from its Capital and Development Reserve account. The repayment of the loan by the Corporation from Super SA Select, together with interest, is in accordance with Schedule 2 of the Public Corporations (Southern Select Super Corporation) Regulations 2012.

Risk and audit at a glance

The Super SA Governance and Risk Team’s responsibilities include oversight of risk management, compliance, the Board’s anti-money laundering and counter-terrorism financing program, incident management and business continuity management. The Team also manage Internal Audit reviews conducted by an external provider.

Fraud detected in the agency

Category/nature of fraud	Number of instances	Financial Impact to Select ($)
Fraudulent transactions attempted by external parties on member accounts	0	$Nil

NB: Fraud reported includes actual and reasonably suspected incidents of fraud.

Strategies implemented to control and prevent fraud

To ensure a strong control environment exists to prevent the occurrence of fraud, the Super SA Office has implemented strong monitoring and validation controls over benefit payments, including verification with members of large benefit payment requests, system-based identification of unusual member account activity, validation of proof of identity prior to payment, and independent review and authorisation of all benefit payments.

Regular information is provided to the Super SA Board from internal and external audit, the Audit, Risk and Finance Committee and the Chief Executive.

The Super SA Office maintains the Board’s Risk Management Strategy and Plan; a Business Continuity Framework and Plan; an Internal Audit Plan; a Compliance Framework and an Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Program.

Data for previous years is available here.

Public interest disclosure

Number of occasions on which public interest information has been disclosed to a responsible officer of the agency under the Public Interest Disclosure Act 2018:
Nil

Data for previous years is available here.

Note: Disclosure of public interest information was previously reported under the Whistleblowers Protection Act 1993 and repealed by the Public Interest Disclosure Act 2018 on 1 July 2019.

Public complaints

Complaint categories	Sub-categories	Example	Number of Complaints 2021-22
Professional behaviour	Staff attitude	Failure to demonstrate values such as empathy, respect, fairness, courtesy, extra mile; cultural competency	0
Professional behaviour	Staff competency	Failure to action service request; poorly informed decisions; incorrect or incomplete service provided	0
Professional behaviour	Staff knowledge	Lack of service specific knowledge; incomplete or out-of-date knowledge	0
Communication	Communication quality	Inadequate, delayed or absent communication with customer	0
Communication	Confidentiality	Customer’s confidentiality or privacy not respected; information shared incorrectly	0
Service delivery	Systems/technology	System offline; inaccessible to customer; incorrect result/information provided; poor system design	0
Service delivery	Access to services	Service difficult to find; location poor; facilities/ environment poor standard; not accessible to customers with disabilities	0
Service delivery	Process	Processing error; incorrect process used; delay in processing application; process not customer responsive	0
Policy	Policy application	Incorrect policy interpretation; incorrect policy applied; conflicting policy advice given	0
Policy	Policy content	Policy content difficult to understand; policy unreasonable or disadvantages customer	0
Service quality	Information	Incorrect, incomplete, out dated or inadequate information; not fit for purpose	0
Service quality	Access to information	Information difficult to understand, hard to find or difficult to use; not plain English	0
Service quality	Timeliness	Lack of staff punctuality; excessive waiting times (outside of service standard); timelines not met	0
Service quality	Safety	Maintenance; personal or family safety; duty of care not shown; poor security service/ premises; poor cleanliness	0
Service quality	Service responsiveness	Service design doesn’t meet customer needs; poor service fit with customer expectations	0
No case to answer	No case to answer	Third party; customer misunderstanding; redirected to another agency; insufficient information to investigate	0
Investments	Investments	Investment fees; Dissatisfaction with investment of assets	0
		Total	0

Data for previous years is available here.

Service improvements

• Removed the investment switching fee on all schemes and products, allowing members to make multiple investment switches, without being
• Introduced an industry best-practice complaints process better aligned to the Australian Securities and Investment Commission Dispute Resolution Regulatory Guide 271, including the acceptance of verbal complaints from 1 July 2022.
• Introduced Protecting Your Super legislation and implemented a process for transferring super balances to the ATO for ‘lost members’ in-line with Protecting Your Super legislation, and to ensure account balances are not eroded by fees.
• Reviewed and updated Board delegations, to allow more staff to process certain payment types, thereby reducing the time taken to action requests and improving services to members.
• Introduced two factor authentication as an extra security measure for members when accessing the online Member Portal.
• Enterprise Release Upgrade: Modern Registry Platform which provides great member information security – digital payment system and fast processing times for members.
• Introduced extra security questions and identification requirements because of the government wide data breach to protect members’ information.
• Implemented a new process for loading Guardianship orders from the Public Trustee to improve member records.
• Updated the Super SA website, including the online Member Portal, and online calculators.
• Review of member communication and consolidation of forms to improve
  member outcomes.
• Refurbished the Super SA Member Centre, and introduction of a new member face-to-face experience

Compliance statement

Super SA Select is compliant with Premier and Cabinet Circular 039 – complaint management in the South Australian public sector	Y
Super SA Select has communicated the content of PC 039 and the agency’s related complaints policies and procedures to employees.	Y

 

View the Audited financial statements 2021-22