Earnings and Fees

Crediting rate (earnings)

The governing rules of the Revised Scheme provide for earnings to be calculated on some benefits at 30 June each year. The earnings rate applied in calculating benefits is called the ‘crediting rate’.

CREDITING RATE		Average of the investment returns for the previous three (3) years		Investment management and administration expenses

This means that in a year where investments perform well, the crediting rate may be less than the net investment return of the Scheme. However, in a year where the investments do not perform well, the crediting rate may be greater than the net return of the Scheme. The crediting rate applied will never be less than 0%.

Interim crediting rate

An interim crediting rate is used to calculate the cash component of your benefit on resignation if:

• you leave the Scheme before the final crediting rate is determined, and 
• receive a benefit comprising a refund of contributions and earnings.

INTERIM CREDITING RATE		Average of: 1) Investment returns for the previous Two (2) yrs 2) Estimated current financial year returns		Investment management and administration expenses

An interim crediting rate is also applied to lump sum benefits paid more than 14 days following the date employment terminated.

Administration costs and investment management fees

No fees apply for Revised Scheme members unless they receive a benefit that comprises a refund of contributions and earnings.

Administration costs and investment management fees are deducted prior to calculating the annual rate of earnings.

For 2009-10, the total deduction was 0.47% of the average value of the Fund.

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