Information Alert: In relation to media coverage

There has been some speculation in the press regarding investments made by the Victorian Funds Management Corporation on behalf of ESSSuper’s defined benefit funds which may have concerned members.

Please note that the accumulation products do not contain any exposure to the “Life Settlements” fund referred to in the media.

Whilst the defined benefit funds have exposure to the “Life Settlements” fund, your entitlements are unaffected. The benefits payable to ESSSuper defined benefit members are specified in Victorian legislation and, consistent with all defined benefit superannuation arrangements, the responsibility for the payment of members’ entitlements ultimately rests with the employer, which in this case is the Victorian Government. There is no cause for ESSSuper members to be concerned about the ongoing security of their entitlements.

It is important to remember that ESSSuper has several different benefit structures within our overall Fund structure. Each of the different fund structures is accounted for separately from a liability point of view.

The different liability pools are as follows:

• Emergency Services Superannuation Scheme - defined benefit (lump sum)
• State Superannuation Fund* – defined benefit (lump sum and pension)
• Accumulation products – Pre and post retirement accumulation accounts including the Beneficiary Account, Accumulation Plan and Income Streams.

Very different investment governance structures exist for the defined benefit funds and accumulation products.

The Victorian Government appointed the Victorian Funds Management Corporation (VFMC) to manage the defined benefit assets on 1 July 2006.

In regard to the Accumulation products, the ESSSuper Board uses Towers Watson as an investment adviser and has full responsibility for investment decisions.

* State Superannuation Fund refers to New Scheme, Revised Scheme, Original Scheme, Transport Scheme and State Employees Retirement Benefits (SERB) Scheme.

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