Member Information Book - Northern Territory Government and Public Authorities' Superannuation Scheme Northern Territory Supplementary ...
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Member Information Book
Northern Territory Government and Public
Authorities’ Superannuation Scheme
Northern Territory Supplementary
Superannuation Scheme
Department of Treasury and Finance
Updated: February 2017
I-NTG-001Northern Territory Superannuation Office
Floor 11, Charles Darwin Centre, 19 The Mall, Darwin NT 0800
GPO Box 4675, Darwin NT 0801
Freecall: 1800 631 630
Telephone: +61 8 8901 4200
Facsimile: +61 8 8901 4222
Email: ntsuperannuation@nt.gov.au
Website: www.super.nt.gov.au
Office hours: Monday to Friday 8.00am to 4.20pm
About This Book
The information contained in this book has been compiled for your convenience and
provides basic information about the Northern Territory Government and Public Authorities’
Superannuation Scheme (NTGPASS) and Northern Territory Supplementary Superannuation
Scheme (NTSSS). In preparing and compiling this information, no account has been taken of
any particular member’s investment objectives, financial situation or individual needs. This
information does not constitute financial advice and should not be taken as such. Each
member is ultimately responsible for making his or her own financial decisions. The
Commissioner of Superannuation (Commissioner) and the Superannuation Trustee Board
(STB), as Trustees of the Northern Territory Government and Public Authorities Employees’
Superannuation Fund (the Fund) urge you to obtain professional advice (whether legal,
financial or otherwise) before proceeding with any course of action, to determine whether it
is appropriate for your needs and requirements.
NTGPASS and NTSSS are exempt public sector superannuation funds and are therefore not
regulated by the Australian Securities and Investments Commission (ASIC). However, where
practical, we endeavour to comply with the spirit of the financial services regulations
overseen by ASIC.
As an exempt fund, we are not required to produce a Product Disclosure Statement, but
have prepared this document to assist you to understand your entitlements, options and the
rules of the schemes.
Disclaimer
The Commissioner, the STB and the Northern Territory of Australia (hereinafter collectively
referred to in this clause as ‘we’) do not accept liability to any person for the information
provided in this book, which is only intended to provide you with general information about
NTGPASS and NTSSS. We do not accept any liability for loss or damage, including
incidental or consequential loss or damage, incurred as a result of any use or reliance
placed upon the information or advice or conclusions reached using the information. While
care has been taken to ensure the information contained in this book is accurate, we give no
warranty or assurance and make no representation as to the accuracy, comprehensiveness
or timeliness of any information contained herein.
Department of Treasury and Finance 2Variation of Information
The Commissioner and/or the STB may at any time vary information contained in this book:
to take into account future changes to the Fund;
to take into account future changes to the NTGPASS or NTSSS schemes;
relating to the manner in which the Commissioner or Northern Territory
Superannuation Office (Superannuation Office) may provide services to you;
to reflect changed administrative practices; or
to correct any errors or omissions.
Department of Treasury and Finance 3Quick Guide to the Member Information Book
General Information on Superannuation
Provides an overview of Commonwealth superannuation legislation and how it relates to
NTGPASS and NTSSS.
Member Investment Choice
Provides an overview of the investment choice offerings for NTGPASS members.
Active Members – NTGPASS and NTSSS
Provides information on the rules for active members, that is, those members who have been
in continuous employment with the Northern Territory Government and certain Northern
Territory public authorities (together referred to as ‘NTPS’) since before 10 August 1999.
Retained Members
Provides information on the rules relating to retained and Family Law spouse members.
Fees
Provides details on fees and charges applicable to accounts.
Forms and Publications
Lists the forms and publications currently available on our website.
Department of Treasury and Finance 4Table of Contents
Introduction 6
General Information on Superannuation, NTGPASS and NTSSS 7
Governance 7
The Superannuation Act and NTGPASS Rules 7
The NTSSS Instrument 7
Administration 7
Funding of Territory-financed Benefits 7
Membership 8
Annual Member Information 9
Member Information Seminars 9
Your Privacy and Third-party Authorities 9
Superannuation Trustee Board 10
Complaints, Reviews and Appeals 11
Northern Territory Civil and Administrative Tribunal 11
Preservation of Benefits 12
Taxation on Superannuation Benefits 13
Contribution Caps 15
Co-contribution 16
Proving Your Identity 17
Fees 17
Member Investment Choice 19
Active Members 19
Retained and Spouse Members 19
Investment Options 19
Calculation of Investment Returns 19
Investment Mixing 22
How Investment Returns Affect Your Superannuation Benefit 22
Which Option is Best for Me? 23
Switching Options 23
Returned Payments 24
Withdrawals 24
Active Members 25
Contributions 25
Benefits 27
Unclaimed Benefits 37
Retained and Family Law Spouse Members 39
Contributions 39
Withdrawals 39
Death and Invalidity Benefits 39
Fees 40
Forms and Publications 41
Department of Treasury and Finance 5Introduction
Welcome to the NTGPASS and NTSSS Member Information Book. This book summarises the
main features of NTGPASS and NTSSS as well as providing general information on
superannuation.
NTGPASS is a contributory lump sum superannuation scheme that started operation on
1 October 1986 and covers eligible NTPS employees who commenced employment with the
NTPS prior to closure of the scheme on 10 August 1999.
NTGPASS members are also automatically members of NTSSS. NTSSS is a non-contributory
lump sum superannuation scheme, which provides an employer-financed superannuation
productivity benefit at the rate of 3 per cent of salary for each year of eligible service since
1 October 1988.
Closure of NTGPASS automatically excludes NTPS employees appointed since
10 August 1999 from NTSSS membership.
NTPS employees employed after the closure of NTGPASS and NTSSS are required to
nominate a complying superannuation fund to receive their superannuation guarantee
contributions. The superannuation guarantee is proposed to rise from 9.5 per cent of salary
to 12 per cent of salary over the period 1 July 2014 to 1 July 2025. Refer to the
Superannuation Guarantee section on page 29 for the current rate.
If a complying superannuation fund is not nominated, superannuation guarantee
contributions are paid into the NTPS default superannuation fund (currently AustralianSuper).
The Commissioner and the staff of the Superannuation Office, a division of the Department of
Treasury and Finance, administer both NTGPASS and NTSSS.
The Superannuation Office maintains a website (www.super.nt.gov.au) with information on
products and services. You can also access a range of publications, forms and fact sheets.
If you require additional information, please contact the Superannuation Office.
Department of Treasury and Finance 6General Information on Superannuation, NTGPASS
and NTSSS
Governance
Like most state and territory government schemes, NTGPASS and NTSSS are classified as
exempt public sector superannuation schemes under the Commonwealth Superannuation
Industry (Supervision) Act 1993 (SIS).
The SIS legislation treats exempt public sector superannuation schemes as complying funds
for concessional taxation and superannuation guarantee purposes. Exempt public sector
superannuation schemes are required to operate in accordance with the principles of the
Commonwealth Government’s retirement income policy.
A Heads of Government Agreement between the Commonwealth, the territories and the
states sets out the principles of the Commonwealth Government’s retirement incomes policy
with which exempt schemes are to comply, including preservation, vesting and reporting
requirements. Both NTGPASS and NTSSS operate in accordance with these principles.
The Superannuation Act and NTGPASS Rules
The Superannuation Act, Superannuation Regulations and NTGPASS Rules set out how the
NTGPASS scheme and the Fund operate.
The NTSSS Instrument
NTSSS was established by an Instrument in writing dated 4 January 1989. The Instrument
sets out the terms and conditions of the scheme.
The scheme covers NTPS employees who met the NTSSS eligibility criteria and were either
employed as at 1 January 1989 or who commenced employment between 1 January 1989
and 9 August 1999.
Administration
The Commissioner and the staff of the Superannuation Office undertake the day-to-day
administration of the schemes in accordance with the Superannuation Act, the
Superannuation Regulations, the NTGPASS Rules and the NTSSS Instrument.
Funding of Territory-financed Benefits
The Territory-financed component of NTGPASS and NTSSS benefits are funded on an
emerging cost basis. The payment of the Territory-financed component of NTGPASS
benefits is guaranteed under section 29(2) of the Superannuation Act. A similar guarantee
applies to NTSSS benefits.
Department of Treasury and Finance 7Membership
NTGPASS
NTGPASS currently has three types of members:
Active members have been in continuous employment with the NTPS since before
10 August 1999. Active members are required to make compulsory contributions to their
NTGPASS accumulation account. On ceasing NTPS employment, active members can claim
their accumulation account and a Territory-financed defined benefit that is based on their
level of contribution, benefit salary and length of scheme membership.
Retained members have ceased NTPS employment and had their Territory-financed defined
benefits retained in the Fund and added to their accumulation account by the Commissioner.
For example, the Commissioner may choose to crystallise a member’s Territory-financed
defined benefits prior to transferring those benefits to an eligible rollover fund.
Family Law spouse members are former spouses of active and retained members. Accounts
for these members are created following the division of superannuation under the Family
Law Act 1975. These members have an accumulation account in the Fund but are not
eligible for the Territory-financed defined benefits.
Of note is that on 15 February 2016, all then existing retained and spouse accounts were
transferred to Sunsuper as part of a successor fund transfer (SFT).
NTSSS
You are an “eligible employee” for the purposes of the NTSSS if you were employed in the
NTPS on a full-time or part-time basis prior to 10 August 1999, except where:
you did not complete at least 3 months continuous service with the NTPS (including
where this employment was on a part-time basis). Note that if you were employed in
the NTPS on or after 1 July 1992, and you received pay of $450 or more before tax
in a month, then you may be entitled to receive Superannuation Guarantee even if
you are not entitled to receive NTSSS. See page 29 for more information on
Superannuation Guarantee; or
private superannuation arrangements apply under an executive contract of
employment, Territory-financed benefits are received from judicial or parliamentary
superannuation schemes or where employees are covered for Superannuation
Guarantee under UniSuper or a school council scheme.
If you are an active contributing member of the Commonwealth Superannuation Scheme
(CSS), you are a member of NTSSS.
Department of Treasury and Finance 8Annual Member Information
A range of information is produced for members each year, including:
Member Information Statement;
Report to Members; and
Annual Report.
The Member Information Statement provides member account and estimated benefit
entitlement details for NTGPASS and NTSSS members as at 30 June. It is sent out to
members, using current contact details, generally by October each year. If your contact
details change, it is important that you advise the Superannuation Office so we can continue
to contact you.
The NTGPASS Report to Members provides members with more general information about
NTGPASS, investment performance and superannuation developments during the year.
An NTGPASS annual report is also published each year and is tabled in the Legislative
Assembly.
Annual reports and the Report to Members are available from our website.
Member Information Seminars
The Superannuation Office conducts information seminars in Darwin and regional centres,
with topics including the NTGPASS and NTSSS rules, any new changes that are introduced
and other topical superannuation and investment issues. There is no cost and members of
both schemes are welcome to attend.
If you are interested in attending one of our seminars, you can obtain information on
upcoming sessions from our website.
Your Privacy and Third-party Authorities
The Commissioner and staff in the Superannuation Office respect your privacy and adhere to
the privacy principles contained within the Territory’s Information Act.
We use and disclose your personal information to enable us to administer your membership
as required or authorised by law. The types of organisations that we may need to disclose
personal information to, include, but are not limited to: employers, our auditors, actuaries,
medical and rehabilitation practitioners, lawyers, investigators, printers, , administration
software providers, other superannuation funds to whom a member may wish to transfer
benefits (from and to), death benefit beneficiaries, a member’s spouse as part of family law
matters (where required by law), the Territory Government, and other government agencies
such as the Australian Taxation Office (ATO).
There may be times when you need to allow a third party, such as your financial advisor,
your partner or your children, access to information about your superannuation entitlements.
Although you can provide an authority in writing, we need to be satisfied that the authority
supplied by you is legitimate. To make this process easier for you, we have created an
Authority to Release Information to a Third Party form.
Department of Treasury and Finance 9Superannuation Trustee Board
Functions of the Superannuation Trustee Board
The Superannuation Trustee Board (STB) is established under the Superannuation Act and
comprises nine members. The membership of the board includes the Under Treasurer, a
chairperson, a deputy chairperson and six nominated persons. Of the nominated persons,
two must be nominated by the Under Treasurer, two must be nominated by unions, one must
be nominated by the Commissioner of Police and one by the Police Association. All
members (except the Under Treasurer) are appointed by the Treasurer for a five-year term.
The primary function of the STB is to act as trustees of the Fund, the Legislative Assembly
Members’ Superannuation (LAMS) Fund, and any other superannuation fund or scheme as
approved by the Treasurer. In this regard, the STB has been approved to be the Trustee of
the Northern Territory Police Supplementary Benefits Scheme.
The Fund comprises member contributions, salary sacrifice contributions, voluntary
contributions, rollovers and the investment earnings generated by these contributions.
Territory contributions are paid into the Fund at the time they become payable to the
employee, usually upon resignation.
The STB’s functions include setting the investment objective and strategy for the Fund.
Additionally, the STB may direct the Commissioner to:
engage managers, financial and legal advisors, actuaries and other experts in, and
in relation to, the management of the investments of the Fund; and
invest the monies of the Fund in such investments in accordance with the STB’s
investment objective and strategy.
Investment Objective and Strategy
The STB’s investment objective is to maximise the long-term returns, within appropriate
levels of risk and exposure, relevant to each investment option. Each investment option has
its own return and risk objective.
The STB’s investment strategy takes into account the overall circumstances of the Fund,
compliance with legislative and regulatory requirements and the general risks in making,
holding and realising investments.
Investment Returns
Net earnings of the Fund are distributed among members to the extent possible.
Returns for NTGPASS accounts are calculated and applied weekly. The current and
historical NTGPASS investment returns are published on our website.
Department of Treasury and Finance 10Complaints, Reviews and Appeals
Complaints Policy
The Superannuation Office’s Complaints Management Policy is available from our office or
can be viewed on our website. The complaints management policy applies to all employees
in respect to services provided by the Superannuation Office.
The complaints policy and procedures are underpinned by the following principles:
visibility and access;
responsiveness;
integrity;
accountability; and
complainant privacy.
The Superannuation Office will ensure that complaints received are dealt with fairly, promptly
and in an efficient and confidential manner, and that the complainant is aware of the
complaints management process and knows what to expect when a complaint is lodged.
Review by Commissioner
The Superannuation Act provides that you (or if you are deceased, the executor or
administrator of your estate) can request the Commissioner to reconsider any decision made
in respect of your NTGPASS and NTSSS membership or entitlements. The request should be
in writing and can request the Commissioner provide reasons for the decision.
Of note is that a decision in relation to the operation or management of a scheme or the Fund
as a whole is not a reviewable decision.
Northern Territory Civil and Administrative Tribunal
If dissatisfied with the outcome of the review by the Commissioner, you (or the executor or
administrator of your estate) can appeal to the Northern Territory Civil and Administrative
Tribunal (NTCAT). Importantly, the Superannuation Act does not allow you to appeal to
NTCAT until the Commissioner has completed reconsideration of the original decision.
NTCAT has the power to vary the Commissioner’s decision. Information on how to make an
application to NTCAT is available on the website www.ntcat.nt.gov.au.
Department of Treasury and Finance 11Preservation of Benefits
The Commonwealth Government’s preservation rules came into effect from 1 July 1999.
Superannuation contributions (both employee and employer contributions) and all
investment earnings on those contributions made from that date are preserved.
Non-preserved Benefit
A non-preserved benefit or ‘cashable’ benefit was calculated for each active member as at
30 June 1999 and is available when a member ceases NTPS employment prior to reaching
their preservation age. The non-preserved amount remains constant once set, as all other
contributions and investment earnings after that date are fully preserved.
Preserved Component
If you are an active member and cease NTPS employment, any preserved component of
your benefit must be rolled over to a complying superannuation fund until you satisfy a
condition of release.
Conditions of Release
The more common conditions of release for NTGPASS and NTSSS members include:
reaching preservation age and retiring from the workforce;
reaching preservation age and commencing a non-commutable retirement income
stream (only applicable to members who opt out of NTGPASS and NTSSS and roll
over their benefits to a fund that offers this kind of product);
retiring on the grounds of invalidity; and
death.
Some funds other than NTGPASS and NTSSS also offer other less common conditions of
release, such as severe financial hardship and compassionate grounds. You would need to
cease membership of NTGPASS and NTSSS and roll your benefits to such a fund before you
can seek to utilise these conditions of release.
Preservation age is between 55 and 60, depending on your date of birth, as detailed in
Table 1.
Table 1: Preservation Age
Date of Birth Preservation Age
Before 1 July 1960 55
1/7/60 – 30/6/61 56
1/7/61 – 30/6/62 57
1/7/62 – 30/6/63 58
1/7/63 – 30/6/64 59
After 30 June 1964 60
Department of Treasury and Finance 12Taxation on Superannuation Benefits
While superannuation generally receives concessional tax treatment, it is taxed differently
from other income and assets. The amount of tax you will pay on your lump sum
superannuation benefit will depend on a number of factors such as your age, length of
membership with either NTGPASS or NTSSS, and the amount of your benefit.
In general, the following rates of tax apply when you receive your superannuation benefit.
Table 2: Tax Rates
Tax-free component 0%
Taxable component
Taxed element
Under preservation age 20%
Preservation age to 59 0% up to $195 0001
15% over $195 0001
Age 60 and over 0%
Untaxed element2
Under preservation age 30% up to $1.415 million3
45% over $1.415 million3
Preservation age to 59 15% up to $195 0001
30% over $195 0001 up to $1.415
million3
45% over $1.415 million3
Age 60 and over 15% up to $1.415 million3
45% over $1.415 million3
Notes: Tax rates do not include Medicare levy (2 per cent) or Budget Repair Levy.
A temporary 2% Budget Repair Levy applies for the 2014-15, 2015-16 and 2016-17 income years to individuals
with a taxable income of more than $180 000 per year (payable at a rate of 2% of each dollar of taxable income
over $180 000).
1 Low rate cap (LRC): 2015-16 $195 000; 2016-17 $195 000. The LRC is indexed each financial year to average
weekly ordinary time earnings and is rounded down to the nearest multiple of $5000.
2 The untaxed element will only apply to active members.
3 Untaxed plan cap amount: 2015-16 $1.395 million; 2016-17 $1.415 million.
Not all Superannuation is Tax Free after Age 60
Active members of NTGPASS and NTSSS will have an untaxed element included in their final
benefit. The untaxed element relates to some or all of the Territory-financed defined benefit
paid on resignation or retirement.
Regardless of your age, the untaxed element will have tax deducted when withdrawn in cash
or rolled over to a superannuation fund.
The tax rate on amounts rolled over is 15 per cent and is deducted by the receiving
superannuation fund. Amounts withdrawn in cash are subject to tax rates outlined in Table 2.
Department of Treasury and Finance 13Do Members of Other Super Funds Pay this Tax?
Yes they do, but they pay it over their working life rather than when they cease employment
and claim their benefit (as is the case with NTGPASS and NTSSS members).
The majority of Australian employees are members of an accumulation style superannuation
fund. Typically, employer contributions are paid to these funds each pay period, or on a
quarterly basis, and are taxed at 15 per cent upon receipt by the fund.
While the contributions tax is the same (15 per cent) for both accumulation and defined
benefit funds, there is a timing difference in when it is deducted.
Regular employer contribution to XYZ Superannuation Fund $100
Less Contributions tax (15% x $100) $ 15
Equals Net amount added to employee superannuation account $ 85
Due to the defined benefit nature of NTGPASS and NTSSS, employer contributions are not
paid until the member ceases employment and the benefit is claimed. Contributions tax has
therefore not been deducted during an NTGPASS member’s working life, which is why some
or all of the final Territory-financed defined benefit is called an untaxed element.
Untaxed element of NTGPASS benefit $100 000
Less Contributions tax (15% x $100 000) $ 15 000
Equals Net amount received in employee superannuation account $ 85 000
Tax File Number
The tax rates quoted previously assume that you have provided your tax file number (TFN).
Provision of your TFN is voluntary. However, if you do not provide your TFN, you will be
taxed at the highest marginal rate. The Superannuation Office is bound by law to properly
safeguard your TFN and will only use it for approved legislative purposes such as taxation
and superannuation reporting purposes.
Superannuation Contributions Tax (Surcharge)
The Commonwealth introduced the superannuation contributions surcharge in 1996. The
surcharge was a tax on employer superannuation contributions for individuals with an
adjusted taxable income (annual taxable income plus all employer and tax deductible
personal superannuation contributions) above the surcharge threshold. The surcharge was
abolished on 1 July 2005, however any existing surcharge debts remain payable.
If you have incurred a surcharge debt as a member of NTGPASS or NTSSS, you have the
option of either paying your surcharge debt or letting the debt accumulate interest at the
10-year bond rate. If you elect to allow your surcharge debt to accumulate, the total of the
debt plus interest will be deducted from your benefit when you cease active membership.
Family Law
From 28 December 2002, the Family Law Act enables superannuation interests to be divided
between separating parties upon marriage breakdown, either by a certified agreement or a
Family Court order. The Territory’s superannuation amending legislation commenced
operation in May 2003.
Department of Treasury and Finance 14From 1 March 2009, the Family Law Act was amended so that it also applies to de facto and
same sex couples. This amendment operates prospectively, which means that it does not
apply to a de facto or same sex relationship that broke down before 1 March 2009.
Contribution Caps
Concessional Contribution Caps
Concessional superannuation contributions, such as by way of salary sacrifice contributions
made from pre-tax salary or employer contributions, are taxed at 15 per cent.
From 1 July 2017, the concessional contribution cap is $25 000 for everyone regardless of
age. Prior to 1 July 2017 people aged 49 and under could contribute up to $30 000
increasing to $35 000 for people aged 50 and over.
Since 1 July 2013, contributions that exceed the caps are taxed at an individual’s marginal
tax rate, plus an interest charge and the excess contributions can be withdrawn. When a
person’s annual income plus taxable superannuation contributions exceed $300 000, an
additional 15 per cent tax is applied to the contributions over the $300 000 threshold.
Prior to 1 July 2013, any amounts contributed above the caps were subject to an additional
tax of 31.5 per cent and the contributions counted against your non-concessional
contribution cap.
The cap is indexed to average weekly ordinary time earnings, but will only increase in
increments of $5000.
If you are an active member of NTGPASS, your Territory-financed (employer) contributions
are not paid to you until you resign. However, a notional amount is assessed against the
concessional contributions cap each financial year.
The notional amount is calculated as a percentage of your contribution salary and is
determined by your NTGPASS contribution rate. The NTGPASS scheme actuary has
determined this notional amount to be 9.6 per cent of contribution salary for a member
contributing to NTGPASS at the rate of 6 per cent.
It is recommended that members concerned about the impact of the concessional
contribution cap on their specific circumstances should seek professional advice.
Non-concessional Contribution Cap
Non-concessional contributions such as voluntary contributions or your compulsory
NTGPASS contributions are made from after-tax salary.
From 1 July 2009, the non-concessional contribution cap was $180 000 and was set at six
times the level of the (indexed) annual concessional contribution cap.
If you are under 65 years of age, you can bring forward two years of contributions, enabling
$540 000 to be contributed in one year, with no further contributions in the next two years.
The Commonwealth has legislated changes to the non-concessional cap from 1 July 2017.
Any non-concessional contributions that exceed the caps are subject to additional tax of
45 per cent (plus the Medicare levy). Until 1 July 2017, the Medicare Levy is 2 per cent for
Department of Treasury and Finance 15persons with taxable incomes up to $180 000 and 4 per cent for persons with taxable
incomes above this amount.
Co-contribution
The Commonwealth Government co-contribution legislation was introduced on 1 July 2003
and is a payment made by the Commonwealth to the superannuation accounts of low
income earners who make eligible personal superannuation contributions.
To be eligible for a co-contribution, you must have made a non-concessional contribution to
superannuation and your income must be below the upper income threshold. You must also
be aged under 71 at the end of the financial year in which the contribution was made.
Compulsory NTGPASS member contributions and voluntary member contributions are
non-concessional contributions and are therefore eligible for the co-contribution. Salary
sacrifice and spouse contributions are not eligible for the co-contribution.
From 1 July 2012, the maximum co-contribution has been reduced to 50 per cent of eligible
superannuation contributions up to $1000.
The full co-contribution is paid for persons with incomes up to the lower income threshold
and then is reduced by 3.33 cents for every dollar earned over the lower income threshold
(based on current levels). The co-contribution ceases when income reaches and exceeds
the upper threshold. The co-contribution is not assessed against the contribution caps.
Table 3: Income Thresholds
Year Lower Threshold Upper Threshold
2012-13 $31 920 $61 920
2013-14 $33 516 $48 516
2014-15 $34 488 $49 488
2015-16 $35 454 $50 454
2016-17 $36 021 $51 021
For the purposes of the co-contribution income thresholds, your income is the sum of your
assessable income, reportable fringe benefits and reportable superannuation contributions
(including salary sacrifice contributions). Consequently, reducing your taxable income via
salary sacrifice contributions to superannuation does not increase your eligibility for the
co-contribution.
Department of Treasury and Finance 16Proving Your Identity
Why Do I Need to Provide Proof?
Commonwealth legislation is in place to help combat the risk of money laundering and the
financing of terrorism through superannuation funds and to minimise the risk of identity fraud
on superannuation accounts. Governing Commonwealth legislation includes the Anti-Money
Laundering and Counter-Terrorism Financing Act 2006 and SIS.
When Do I Need to Prove My Identity?
You are required to provide proof of your identity when claiming a payment from a
superannuation scheme or applying for a new superannuation account or product.
You can bring original identity documents into the Superannuation Office to be sighted by a
staff member, or provide a certified copy of your identity documents. Please refer to our
Proving Your Identity fact sheet for a list of authorised certifiers. Transactions where you are
required to provide proof of your identity include:
claiming a benefit from NTGPASS or NTSSS;
making a lump sum withdrawal from an NTGPASS accumulation account;
applying for early release of superannuation benefits; and
opening an NTGPASS accumulation account (for example, a Family Law spouse
account following the split of another NTGPASS account).
New electronic processing requirements associated with SuperStream were introduced from
1 July 2013.
Proof of identity is not required for members who roll over their entire benefit to an external
superannuation fund unless that fund is a self-managed super fund. Instead, you are
required to provide your TFN which is validated with the ATO. If you do not provide your TFN
or it cannot be validated, you will be required to provide proof of identity.
The Superannuation Office will only accept identity documents that are in accordance with
the Anti-Money Laundering and Counter-Terrorism Financing Rules.
Fees
Account Keeping
The Territory meets the cost of administering NTGPASS and NTSSS for active members.
Retained and family law spouse members are charged an account-keeping fee of
$156 per annum.
The fee is deducted from your account on 30 June each year or when you exit the scheme. If
you exit the scheme during the financial year, the fee is calculated on a pro-rata basis.
Department of Treasury and Finance 17Family Law
Fees are charged in relation to applications for NTGPASS information under the
Family Law Act 1975 (valuation $150) or for other family law actions undertaken such as
splitting or flagging a superannuation interest ($380). No family law fees are applicable to
NTSSS.
Investment Switching
All NTGPASS members are permitted one member investment choice switch each financial
year, free of charge. Each additional switch attracts a $35 fee, deducted from your account.
Investment Management
Investment management fees are deducted from the investment return for each investment
option before investment crediting rates are set. This means that the investment returns
credited to your account are net of investment fees.
Investment management fees represent the costs charged by our investment managers for
managing your investments. The investment fees vary between the six investment options
because there are different costs associated with managing the underlying investments. Due
to the scale of NTGPASS, the Trustees are able to negotiate competitive fees with the
investment managers and receive fee rebates. The amount of the rebate depends on the
total amount NTGPASS has invested. This means that the actual fee you will pay over a year
will always be lower than the stated amount, due to the fee rebate NTGPASS receives.
The fees are charged as a percentage of the value of the money you have invested in the
investment option. For example, a superannuation accumulation account of $100 000
invested in the growth option, could cost up to $707 each year in investment fees (that is,
0.707 per cent of $100 000).
The full list of fees for all members can be found on page 40.
Department of Treasury and Finance 18Member Investment Choice
Since 1 July 2007, Member Investment Choice has provided NTGPASS members with
options to choose how their accumulation account is invested.
Active Members
If you are an active member (that is, currently employed by the NTPS and contributing
between 2 and 6 per cent of your salary to NTGPASS) your NTGPASS benefit has two
components, an employer-funded defined benefit and your accumulation account.
The employer-funded defined benefit is the amount payable to you when you cease
employment with NTPS and is based on your salary, contribution rate and years of service.
For most members, this component is the largest part of their total NTGPASS benefit and
acts as protection against negative investment returns because it is not affected by how
investment markets are performing.
Your accumulation account is made up of your contributions (member, personal, salary
sacrifice, spouse and co-contributions) plus rollovers from other superannuation funds and
investment earnings. Member Investment Choice applies to this component of your
NTGPASS benefit, which is subject to fluctuations in market performance.
Retained and Family Law Spouse Members
If you are a retained or Family Law spouse member you only have an accumulation account.
If you were previously an active member, your employer-funded defined benefit was paid
when you ceased NTPS employment. Member Investment Choice therefore applies to the
entire benefit that you have in NTGPASS.
Investment Options
NTGPASS members have six pre-mixed investment options to choose from. The options are:
managed cash growth
conservative assertive
cautious aggressive
The growth option is the default option for members who do not actively make a choice.
Each investment option contains a different mix of growth (property and shares) and
defensive (fixed interest and cash) assets designed to cater for a variety of personal
circumstances and attitude to risk.
Calculation of Investment Returns
NTGPASS investment returns are calculated and applied on a weekly basis. These returns
and financial year-to-date returns are posted on our website.
Investment returns can be positive or negative depending on prevailing market conditions
and the balance of your account will vary in line with the movement in these returns.
Department of Treasury and Finance 19Table 4: Investment Options as at June 2016
Managed Cash Conservative Cautious
To provide greater assurance on the To provide limited volatility in To provide a balanced mix of assets,
security of assets by investing in cash investment value by investing steady long-term returns and a low
investments with an expectation to primarily in cash and fixed interest level of investment volatility
achieve low long-term returns investments
Return Objective Return Objective Return Objective
A high probability that the net return1 A high probability that the net return1 A high probability that the net return1
will exceed the increase in CPI over will exceed the increase in CPI over will exceed the increase in CPI over
5-year rolling periods by at least 5-year rolling periods by at least 5-year rolling periods by at least
0.5 per cent per annum 2 per cent per annum 2.5 per cent per annum
Risk Objective Risk Objective Risk Objective
A low chance of a negative annual The expected frequency of a negative The expected frequency of a negative
return annual return should not exceed annual return should not exceed
1.5 years in every 20 years, on 2.7 in every 20 years, on average
average
Asset Mix Asset Mix Asset Mix
Target Target Target
% % %
Growth Assets 0.0 Growth Assets 30.0 Growth Assets 50.0
Property 0.0 Property 3.0 Property 5.0
Australian shares 0.0 Australian shares 9.0 Australian shares 17.0
Global shares 0.0 Global shares 13.0 Global shares 22.0
Alternatives 0.0 Alternatives 5.0 Alternatives 6.0
Defensive Assets 100.0 Defensive Assets 70.0 Defensive Assets 50.0
Cash 100.0 Cash 10.0 Cash 0.0
Fixed interest 0.0 Fixed interest 60.0 Fixed interest 50.0
Recommended minimum Recommended minimum Recommended minimum
investment term2 investment term2 investment term2
Short term Short term (3 years) Medium term (5 years)
1 The net return is after investment management fees and taxes have been deducted.
2 The minimum investment term is the average time until planned spending of superannuation money in retirement.
Department of Treasury and Finance 20Table 6: The Six Investment Options as at June 2016 (continued)
Growth Assertive Aggressive
To invest proportionately more in To invest primarily in shares and To invest wholly in shares and
shares and property than cash property with limited exposure property, accepting high volatility with
and fixed interest with an to fixed interest investments, an expectation to achieve higher
expectation to achieve medium to accepting higher volatility with an long-term returns
high long-term returns expectation to achieve higher returns
over the long term
Return Objective Return Objective Return Objective
A high probability that the net return1 A high probability that the net return1 A high probability that the net return1
will exceed the increase in CPI over will exceed the increase in CPI over will exceed the increase in CPI over
5-year rolling periods by at least 5-year rolling periods by at least 5-year rolling periods by at least
3 per cent per annum 3.5 per cent per annum 4 per cent per annum
Risk Objective Risk Objective Risk Objective
The expected frequency of a negative The expected frequency of a negative The expected frequency of a negative
annual return should not exceed annual return should not exceed annual return should not exceed
4.2 in every 20 years, on average 4.6 in every 20 years, on average 5.2 in every 20 years, on average
Asset Mix Asset Mix Asset Mix
Target Target Target
% % %
Growth Assets 75.0 Growth Assets 85.0 Growth Assets 100.0
Property 5.0 Property 5.0 Property 5.0
Australian shares 30.0 Australian shares 32.0 Australian shares 37.0
Global shares 34.0 Global shares 42.0 Global shares 52.0
Alternatives 6.0 Alternatives 6.0 Alternatives 6.0
Defensive Assets 25.0 Defensive Assets 15.0 Defensive Assets 0.0
Cash 0.0 Cash 0.0 Cash 0.0
Fixed interest 25.0 Fixed interest 15.0 Fixed interest 0.0
Recommended minimum Recommended minimum Recommended minimum
investment term2 investment term2 investment term2
Medium to long term (7 years) Long term (10 years) Long term (10 years)
1 The net return is after investment management fees and taxes have been deducted.
2 The minimum investment term is the average time until planned spending of superannuation money in retirement.
Department of Treasury and Finance 21Investment Mixing
You can choose one investment option for your account balance and the same or a different
option for all future contributions, a maximum of two investment options.
Future contributions are all contributions made to your accumulation account after you
switch to a particular investment option. This includes any rollovers, personal contributions,
member contributions, salary sacrifice and co-contributions.
How Investment Returns Affect Your Superannuation Benefit
Prior to resigning from the NTPS, only your accumulation account is subject to investment
returns. When you resign from the NTPS and complete a benefit claim form, your
employer-financed defined benefit is calculated and, together with your accumulation
account, is rolled over to a complying superannuation fund.
From that point onward, your entire superannuation benefit is subject to investment returns.
Table 5 illustrates the effect of a 5 per cent positive or negative investment return on your
superannuation benefits.
Table 5: Effect of Positive or Negative Return
Benefit Component Active Member
Accumulation account $59 600
NTGPASS employer-funded $117 000
NTSSS employer-funded $23 400
Balance $200 000
YTD investment return – positive 5%
Accumulation account $62 580
NTGPASS employer-funded $117 000
NTSSS employer-funded $23 400
Balance $202 980
YTD investment return – negative 5%
Accumulation account $56 620
NTGPASS employer-funded $117 000
NTSSS benefit $23 400
Balance 197 020
Department of Treasury and Finance 22Which Option is Best for Me?
We cannot provide personal financial advice. If you require assistance in selecting an
investment option, you should seek the services of a qualified professional. However, some
factors to consider when choosing your investment options include:
Investment time horizon
The longer you have to invest, the more time that you have to ride the ups and
downs of volatile investment markets.
Personal circumstances
Your circumstances have a bearing on investment risk preference, for example, your
marital status, number of dependants, and whether you have alternate sources of
income.
Attitude to risk
Not everyone is comfortable with volatile investment markets and the chance of
negative returns. If you have a low tolerance for risk it may be appropriate for you to
invest more conservatively.
Market timing
Past investment returns are no indication of future returns. Trying to predict what will
happen over short time periods is virtually impossible and there are many studies
that show significant losses can be made by people who attempt to ‘time the
market’.
Switching Options
You can change your investment options by completing a Member Investment Choice
Switch form. That form enables you to choose two things at the same time:
the investment option that will apply to the whole of your current accumulation
account balance; and
the investment option that will apply to contributions made to your accumulation
account from that date forward.
The first investment switch in a financial year is free of charge. Subsequent switches in a
financial year attract a $35 fee, deducted from your account.
Your account is revalued immediately prior to processing your investment switch application.
The resulting revalued amount is then switched into your elected investment option(s).
In general, applications to switch superannuation account investments are processed on a
weekly basis. However, members should allow up to 30 days for applications to be actioned.
Written confirmation will be provided when the request has been processed. Cut-off dates
apply for processing and these times may vary during the year such as the
Christmas/New Year period and end of the financial year. For information regarding cut-off
dates and any upcoming variations to processing times, please check our website.
Example
An NTGPASS member has their account balance invested in the conservative option and
their future contributions in the assertive option.
Department of Treasury and Finance 23The member elects to switch their account balance to the cautious option and continues to
direct future contributions to the assertive option.
The account is revalued immediately prior to processing the switch and the amounts held in
the conservative and assertive options are transferred to the new option (cautious). Future
contributions start to accumulate again in the assertive option.
Investment Options Account Balance Future Contributions Balance
Prior to processing
Conservative $120 000
Assertive $15 000
After processing
Cautious $135 000
Assertive $0
Returned Payments
In the event of a payment (such as a superannuation rollover) being returned to the
Superannuation Office, the payment will be retained in the same investment option where
your account balance was invested prior to the transfer. If you have not previously made a
choice between investment options, the returned payment will be invested in the default
(growth) option until advised. You will be contacted to clarify payment details.
Withdrawals
Active members cannot withdraw lump sums from their account. A member may request
payment of a lump sum at the time that they claim their benefit. Withdrawals are subject to
satisfying a condition of release, for example retiring after age 56.
Department of Treasury and Finance 24Active Members
Contributions
NTGPASS Compulsory Member Contributions
Active members are required to make compulsory contributions to their accumulation
account at one of the following contribution rates:
2% 3% 4% 5% 6%
Each 1 per cent of compulsory contributions made for a year generates one benefit point for
the member. For example, a 6 per cent contribution rate accrues six benefit points each
membership year, while a 2 per cent contribution rate accrues two benefit points.
The compulsory contributions entitles the member to a Territory-financed defined benefit,
which is calculated according to a formula based on the number of benefit points, length of
membership and benefit salary.
Active members are not able to access their superannuation until they either cease NTPS
employment or opt out of NTGPASS (opting out is only possible if you have either reached
your preservation age or are employed on an Executive Contract of Employment – see page
39 for more information on opting out). This restriction applies to the Territory-financed
benefit as well as the member’s accumulation account, which may contain rollovers from
other funds and non-preserved amounts.
If you did not elect a contribution rate when you became a member, contributions were
deducted at the default rate of 5 per cent and will have remained at this rate until you elect to
change it at an annual review on 1 October.
Your contributions are deducted from your after-tax salary. Contributions are based on your
contribution salary, which is your gross annual salary plus certain approved allowances such
as Northern Territory allowance, shift allowances and qualification or skill allowances.
Contributions for part-time employees are based on their part-time salary and approved
allowances.
Your contributions and contribution salary are determined at your entry date and are
updated each year at the annual review on 1 October. Any changes to your contributions
take effect from the first payday following 1 October.
You may apply for the Commissioner’s approval to maintain your previous higher
contribution salary if your contribution salary reduces from one annual review to the next
(other than because of taking up part-time employment).
You will be sent a form each year prior to the annual review to allow you to:
vary your elected contribution rate; or
request approval to maintain your previous higher contribution salary.
Can I contribute more than 6 per cent?
You can contribute more than 6 per cent of your salary to NTGPASS with additional voluntary
contributions or salary sacrifice, however it will not affect your Territory-financed defined
benefit.
Department of Treasury and Finance 25NTGPASS Voluntary Member Contributions
So long as you are making your compulsory NTGPASS member contributions (i.e. after tax
contributions of between 2 per cent and 6 per cent of your contribution salary), you can
make additional after-tax contributions to your member accumulation account in the Fund.
Voluntary member contributions can be made either as a lump sum or by regular payroll
deductions. Regular payroll deductions can be suspended or varied by giving one month’s
written notice to your payroll section.
NTSSS Contributions
NTSSS is employer funded, and members cannot contribute to the scheme.
Salary Sacrifice
Salary sacrifice allows you to direct before-tax salary into your NTGPASS member
accumulation account. Salary sacrifice can be a tax-effective method of accumulating more
savings for retirement. When you salary sacrifice, you arrange with your employer to forgo
pre-tax salary in return for the employer contributing that sacrificed salary into your
superannuation fund. Your Territory-financed benefit will not alter as the salary used to
calculate your final NTGPASS benefit will not be affected (that is, your benefit salary stays
the same).
Salary sacrifice contributions are concessional contributions under Commonwealth
legislation (refer to the Contribution Caps section on page 15). If you contribute 6 per cent in
compulsory member contributions, you can salary sacrifice up to an amount that will ensure
you remain under the concessional contribution caps.
Salary sacrifice contributions are made by regular fortnightly payroll deductions and an
annual fee is applicable (refer to the Fees section on page 40). Your payroll section will
deduct the fee from your pre-tax salary on commencement of salary sacrifice and then
annually at the salary packaging annual review on 1 April.
A 15 per cent contributions tax is deducted from salary sacrifice contributions upon receipt
into the Fund. The contributions receive investment earnings relative to the selected
investment option and all contributions made after 1 July 1999 are preserved until a
condition of release is satisfied.
A salary sacrifice calculator is available on the website. Whether salary sacrifice is right for
you can only be determined after your personal objectives, financial circumstances and
needs have been considered. You are encouraged to seek advice from a licensed financial
planner prior to any decision regarding salary sacrifice.
Salary sacrifice forms are available from your payroll section.
Department of Treasury and Finance 26Rollovers
Members can rollover or transfer amounts from other complying superannuation funds to
their NTGPASS member accumulation account by contacting the appropriate
superannuation fund for a rollover form. The fund is required to rollover your money within
three days of receiving all necessary paperwork.
It is important to check with your old superannuation fund before rolling your money out of
the fund as they may charge an exit or processing fee.
Active members cannot withdraw or transfer rollover payments from NTGPASS until they
cease NTPS employment or opt out of the scheme.
Contributions While on Leave Without Pay
You are required to continue your compulsory member contributions during any period of
leave without pay of 14 days or less duration.
You can apply to the Commissioner for approval to continue your compulsory member
contributions if your period of leave without pay is longer than 14 days. The approval can be
sought using an Application to Make Member Contributions While on Leave Without Pay
form.
You are not eligible to continue your compulsory member contributions during any part of a
period of leave without pay longer than three months where the leave is not approved for
superannuation purposes. This includes leave without pay for recreation or study leave
purposes.
Note that if contributions are made without the Commissioner’s approval you will not be
entitled to receive benefit points in respect of those contributions.
Contributions While on Leave on Half Pay
You are required to continue your compulsory member contributions based on your full-time
salary during any period of leave taken on half pay. You will continue to accumulate benefit
points at the full rate.
Benefits
NTGPASS Benefit Components
NTGPASS is a ‘split benefit’ lump sum scheme and your final NTGPASS benefit may
comprise one or all of the following components.
Your member accumulation account balance (your contributions and rollovers
accumulated with investment earnings). This component is included in all NTGPASS
benefits.
An accrued employer component. This component is equal to 2.5 per cent of benefit
salary for each benefit point you have accrued during your membership. Full vesting
is achieved after 10 years of eligible service. Members who resign with less than 10
years contributory membership will have a vesting factor applied that will affect the
accrued employer component paid. See example 2 on page 31 for further details.
Department of Treasury and Finance 27 A prospective employer component. This component is payable under the age of 60
if you retire on invalidity grounds or die while an active member and you are
survived by a dependant. It is generally equal to 17.5 per cent of your benefit salary
for each year of foregone service between the date of ceasing employment and
age 65.
Member Accumulation Account Balances
The value of your member accumulation account varies with the weekly investment return
applicable to your chosen investment option. Investment returns can be positive or negative.
The value of member accumulation accounts used in the examples in this book are purely
hypothetical and are used for illustrative purposes only. The value of your member
accumulation account will depend on your contribution amounts including salary sacrifice
and rollovers from other super funds, your chosen investment options and their earnings
over your membership period, and any Commonwealth Government co-contributions you
may have received.
You can request an estimate of your member accumulation account by completing the
Benefit Estimate Request form and returning it to our office. The estimate will also include
your employer-financed defined benefits from NTGPASS and NTSSS. Refer to the Fees
section on page 40 for the applicable fee.
Benefit Points and Benefit Salary
Each 1 per cent of compulsory contributions you make for a full year generates one benefit
point. Apart from resignation benefits within the first 10 years of membership, each benefit
point you accrue during your membership is worth 2.5 per cent of your benefit salary when
you leave the scheme. For example, if you contribute to the scheme at the rate of 6 per cent
for a full year you will accrue six benefit points for that year. Contributing at 2 per cent for a
full year will result in you accruing two benefit points for that year.
Part-time employees accrue benefit points in proportion to the full-time equivalent work
undertaken at each annual review date. For example, if you work 50 per cent of a full-time
position and contribute at 6 per cent of your part-time salary for a full year, you will accrue
three benefit points (50 per cent of six benefit points).
You can maximise your final employer component of your benefit by contributing at the
higher contribution rates. The more benefit points you accrue, the greater your final employer
benefit.
Chart 1 illustrates the accumulation of benefit points according to contribution rate and years
of service.
Department of Treasury and Finance 28Chart 1: Accumulation of Benefit Points According to Contribution Rate
Your benefit salary (the salary on which the accrued employer and prospective employer
components are based) is the average of your last three contribution salaries, after these
salaries have been updated to a current value at your exit date by the percentage movement
in average weekly earnings. Part-time salaries are converted to full-time equivalent salaries
when a benefit salary is calculated.
Superannuation Guarantee
Employers are required to pay superannuation contributions for all employees aged over 18
who earn more than $450 per month.
If your accrued employer component from NTGPASS does not satisfy superannuation
guarantee (SG) obligations, due to making compulsory contributions at a low rate or a
vesting factor less than one, you will receive a top-up payment when you are paid your
NTSSS benefit.
Prior to 1 July 2014, the minimum rate was 9.25 per cent of ordinary time earnings. The SG
rate is proposed to incrementally increase to 12 per cent from 1 July 2025.
Year Rate (%)
2014-15 9.5
2015-21 9.5
2021-22 10.0
2022-23 10.5
2023-24 11.0
2024-25 11.5
From 1/7/2025 12.0
Department of Treasury and Finance 29You can also read
