Closure of the NTGPASS Account Based Pension
The NTGPASS account-based pension product closed to new members from 1 April 2014. Since the NTGPASS ABP commenced in 2008, there was only a very modest take-up of the ABP, with just over 220 pensions being paid.
Given the small membership of the fund, the NT Superannuation Office undertook a review into the feasibility of continuing to offer ABP products and services. The review demonstrated that the ABP did not achieve the economies of scale necessary to continue to service account holders or to make it a viable option for the future. Before making this decision, consideration was given to applying a substantial increase in the administration fee to be able to provide increased services such as online access but, given the large number of competitive alternative products available in the marketplace, this is not a practical long-term response.
Information about the closure is available in the Cessation of the NTGPASS Pension Product (docx, 130kb) fact sheet.
Successor Fund Transfer
The Superannuation Trustee Board decided that it was in the best interest of NTGPASS account-based pensioners that their accounts be transferred to another superannuation fund.
Following an independent analysis of suitable alternative funds, AustralianSuper was selected as the successor fund. AustralianSuper is the default superannuation provider for the Northern Territory Government and has a proven strong investment performance and low capped administration fees. AustralianSuper offered additional features not provided to NTGPASS pensioners, such as online access and personal financial advice services.
Before the transfer took place, the Trustees of NTGPASS and AustralianSuper satisfied themselves that transferring members would be conferred equivalent rights in respect of their benefits and would be no worse off.
On 1 February 2015, the NTGPASS Account-Based pension accounts were transferred to AustralianSuper under a successor fund transfer.
For more information, visit AustraliaSuper’s website.