State super - Crediting rates

It’s no surprise the last few years have been a rollercoaster of returns for superannuation investments. The good news is that investment returns generally don’t impact defined benefit funds.

State super defined benefit members

If your retirement options include resignation or retrenchment benefits, crediting rates affect the refund of contributions plus interest.  

State super interim crediting rates

Effective date	Interim crediting rate
24 January 2012	7.44%
22 December 2011	7.62%
23 November 2011	8.26%
24 October 2011	7.50%
22 September 2011	8.35%
22 August 2011	9.12%
22 July 2011	9.67%
23 June 2011	2.10%
23 May 2011	2.29%
27 April 2011	2.34%
23 March 2011	2.32%
22 February 2011	2.03%

 * An interim crediting rate is applied in the year a member leaves the fund for the period up to the date of exit. The interim crediting rate is calculated in the same way as the declared crediting rate except that an estimated rate is used for the current financial year. The estimated rate will be the actual investment earnings (net of expenses and tax) for the year to date, plus an assumed rate (net of expenses and tax) for the remainder of the financial year. The interim crediting rate will also be no less than zero.

Crediting policy for state super defined benefit assets

The earnings are calculated and applied annually at 30 June using the declared crediting rate calculated as the compound average of the current and previous two years’ annual investment earnings (net of expenses and tax).

It’s important to note that the declared crediting rate will never be less
than 0.0%.

For example, if the result of the compound average calculation is -1.0% then the declared crediting rate for that year would be 0.0%. Any such shortfall is not considered in future years’ calculation of rates.   

State super declared crediting rates

Year ended 30 June	Investment Return		Declared  Crediting Rate
	Gross	Net*
2011	12.05%	11.21%	2.04%
2010	12.5%	11.0%	0.0%
2009	-15.7%	-13.9%	0.0%
2008	-8.7%	-7.8%	7.9%
2007	17.3%	16.9%	16.4%

Crediting rates are used when the benefit payable consists of a refund of contributions plus interest (generally resignation or retrenchment benefits).