The Police Superannuation Board (the Board), established under the Police Superannuation Act 1990 (the Act), is responsible for the collection of contributions from members of the Police Superannuation Scheme (the Scheme) and for the payment of superannuation benefits to members and members’ families.
During 2001-02 the Police Superannuation (Miscellaneous) Amendment Act 2001 was passed by Parliament. Under this Act the benefits of the Police Occupational Superannuation Scheme (POSS) were merged into the Police Superannuation Scheme. The legislative changes came into operation on 1 July 2001.
The main financial administration arrangements that apply in relation to the scheme involve:
The Police Superannuation Fund (the Fund) — The Fund, established under the Act, records as income to the Fund, members’ contributions and revenue derived from investment of those monies, and also records as payments from the Fund, the employee share of benefit payments and administration costs.
The Fund is comprised of two divisions, namely, an Old Scheme Division which provides pension benefits with a lump sum option and a New (Lump Sum) Scheme Division which provides lump sum benefits.
Under the Act, the investment management responsibility for the Fund is vested with the Superannuation Funds Management Corporation of South Australia (Funds SA).
The Police Superannuation Scheme Employer Contribution Account (Police Employer Contribution Account) was established in 1994-95 to record employer contributions on behalf of the police officers and cadets.
Pursuant to the Police Superannuation (Miscellaneous) Amendment Act 2001, the net assets of the former Police Occupational Superannuation Scheme Contribution Account (POSS Employer Contribution Account) were combined with the Police Superannuation Scheme Employer Contribution Account for the year ended 30 June 2002.
The employer share of the benefits paid and administration costs is met from the Police Employer Contribution Account. Monies deposited into the account are invested and managed by Funds SA but do not form part of the Fund.
Police officers and cadets who commenced employment on or before 31 May 1990 are members of the Old Scheme Division. Those police officers and cadets who commenced employment on or after 1 June 1990 are members of the New Scheme Division. The New Scheme Division was formally closed to new members through amendments to the Police Superannuation Act 1990 in October 1994. From 1 July 1995 police officers and cadets who commenced employment became members of the Southern State Superannuation Scheme which is administered by the South Australian Superannuation Board.
The Board was unable to finalise its financial statements for the year ended 30 June 2002 in sufficient time to enable the audit to be completed at the date of finalisation of this Report.
The audited financial statements of the Board for the year ended 30 June 2002 will be included in a Supplementary Audit Report to Parliament.