AGY-1085 | State Authorities Superannuation Board

Full description

The State Public Service Superannuation Board ceased to exist from 1 April 1988, following amendments to the Superannuation Act, 1916. From that date the administration of the Fund was transferred to the State Authorities Superannuation Board (SASB) which was constituted under the Superannuation Administration Act, 1987. The State Superannuation Board, Public Authorities Superannuation Board, and the Police Superannuation Board were also abolished by the Act. (1)

Three Schemes were closed to new members: State Public Service Superannuation Scheme, Public Authority Superannuation Scheme, and Police Superannuation Scheme. Administration for these three closed funds were taken over by the newly formed SASB. (2)

Following the three scheme closures, two new schemes were created on 1 April 1988. The State Authorities Superannuation Scheme (SASS) was opened, and all new NSW public servants and public sector staff had access to the one scheme. The State Authorities Non-contributory Superannuation Scheme was also created. (3)

The SASB became the trustees for the First State Super (FSS) fund that was managed by the State Superannuation Investment and Management Corporation.

By 1990, a number of other public sector superannuation schemes were closed and members were transferred to SASB. The schemes transferred included the State Public Services Superannuation Fund, the Transport Gratuity Scheme and the Government Railways Superannuation Fund, among others. (4)

On 19 December 1992 saw the closure of SASS to new members. (5)

In December 1995, the SASB announced that seven investment managers had been appointed one of which was SSIMC.

In May 1996 an independent master custodian was appointed. The new investment arrangements for the FSS fund commenced on 1 October 1996.

From 1 July 1996, public sector superannuation was restructured by the Superannuation Administration Act, 1996 and the Superannuation (Axiom Funds Management Corporation) Act, 1996 (Act No. 40 1996).

Two Trustee Corporations replaced the existing trustee, SASB. These were:
- FSS Trustee Corporation (FTC) responsible for the accumulation schemes of FSS and Public Sector Executives Superannuation Scheme
- SAS Trustee Corporation (STC) responsible for the closed benefit schemes known as the 'Pooled Fund'. The Pooled Fund comprised four New South Wales public sector schemes - the State Superannuation Scheme (SSS), Police Superannuation Scheme (PSS), State Authorities Superannuation Scheme (SASS) and the State Authorities Non-contributory Scheme (SANCS). (6)

The existing service provider, SSIMC, was divided into:
- Superannuation Administration Authority (SAA) responsible for scheme administration of both STC and FTC funds. Scheme Administration involved services centered on the collection of members' contributions and payments on behalf of the Trustee Corporations.
- Axiom Funds Management Corporation (Axiom) responsible for funds management. Axiom managed the investment of the entire STC Pooled Fund. It managed all of the FSS funds, until 30 September 1996 when funds were allocated to seven new investment fund managers. Axiom continued to manage the Cash and International Fixed Interest sectors, and half the Australian Equities in the FSS fund.

The NSW Government sold Axiom on 16 May 1997 to Deutsche Bank. (7)

Endnotes
1. Superannuation Administration Act 1987 (Act No.210, 1987), s.2
2. SAS Trustee Corporation website, History, https://www.statesuper.nsw.gov.au/about-us/our-history (accessed 16 November 2022).
3. Ibid.
4. SAS Trustee Corporation, Annual Report 2020-2021, p.13
5. Ibid.
6. Superannuation Administration Act 1996 (Act No.39, 1996). s.1
7. The sale was reported on 3 May 1997 in 'NAB bid high, but Axiom to Germans', Sydney Morning Herald, 3 May 1997, p.93. Actual sale date see Annual Report of the SAS Trustee Corporation for the year ended 30 June 1997, p.6.