This report is a snapshot of the investment performance and main Northern Territory Government and Public Authorities’ Superannuation Scheme (NTGPASS) activities during the year.

Year in Review Investment overview Contribution cap summary Superannuation Office news Your NTGPASS benefit Superannuation Trustee Board Financial information

Investment OverviewInvestment conditions continued to provide good returns for growth assets such as equities in 2014-15, although weaker than previous years. Australian equities, as measured by the ASX 300 index, rose 5.6 per cent during the year and global equities, represented by the MSCI All-Countries World index (hedged), rose 11.6 per cent. Interest rates remained at historically low levels around the globe for much of the year, with Australia’s official cash rate finishing the year at 2 per cent.

Investment Returns – SuperannuationThe NTGPASS growth option returned 10.79 per cent for superannuation accounts. These returns are above the median return for options with a similar asset allocation (as reported by Super Ratings) of 9.60 per cent this year. The return of 10.05 per cent for the pension growth option represents a part-year return to 31 January 2015, as pension accounts were transferred to AustralianSuper on 1 February 2015 under a successor fund transfer. Five-year average returns can be calculated for all superannuation options, but growth continues to be the only option available for the full 10 years, with a return of 6.52 per cent per annum over 10 years and 8.58 per cent per annum since inception. Table 1 details the fund’s superannuation investment returns for 2014-15, the five-year average return, as well as the average annual return since each investment option commenced operation. The average returns reflect the compound average effective rate of net earnings, as required for reporting of long-term returns under Corporations Regulations for regulated superannuation funds. Investment returns are not included for the closed pension product.

Table 1: Investment ReturnsManaged

Cash1Conservative2 Cautious2 Growth3 Assertive2 Aggressive2

% % % % % %2014-15 2.03 6.40 8.56 10.79 11.79 12.925-year average

2.98 6.50 8.11 9.83 10.51 11.42Since inception

3.05 4.59 4.90 8.58 4.53 4.20Commencement dates: (1) March 2009; (2) July 2007; (3) 1986.

Risk and Return ObjectivesThe investment options have risk and return objectives measured annually to monitor their performance against targets. The return objective is the net return expected to be achieved above the rate of inflation, calculated as a simple average over five-year rolling periods. The risk objective is expressed as an average number of years before the option is expected to have a negative return. The probability varies by investment option, with the most aggressive investment choice bearing the higher risk of a negative return. The risk of a negative return decreases with more conservative investment

choices.

Table 2: Risk and Return ObjectivesInvestment Option

Return Objective 5-Year Average1

Objective Met

Risk Objective

Result Objective MetManaged Cash CPI + 0.5% = 2.84% 2.99% Yes Low 0 Yes

Conservative CPI + 2.0% = 4.34% pa

6.51% Yes 1 in 7 years 1 in 8 years

YesCautious CPI + 2.5% = 4.84%

pa8.14% Yes 1 in 4.5 years 2 in 8

yearsNo

Growth (default) CPI + 3.0% = 5.34% pa

9.95% Yes 1 in 4 years 3 in 29 years

YesAssertive CPI + 3.5% = 5.84%

pa10.68% Yes 1 in 3.5 years 2 in 8

yearsYes

Aggressive CPI + 4.0% = 6.34% pa

11.68% Yes 1 in 3 years 3 in 8 years

NoCPI = consumer price index; pa = per annum1 Actual rate of return on investment option.

Results Five-year average CPI is 2.34 per cent per annum. Returns exceed the target for all options, therefore

the return objective has been met for all options. Risk objective has not been met for the cautious and aggressive options, as negative returns were

experienced more frequently than the expected target.Investment Consultant

JANA Investment Advisers Pty Ltd (JANA) is the implemented consultant for the management of NTGPASS member funds. As part of its role, JANA advises the Superannuation Trustee Board (STB), which is responsible for investing members’ money held in their accumulation accounts, on investment objectives and strategies, as well as risk and asset allocation. JANA selects and monitors investment managers who manage the funds. JANA reports to STB on these matters, as well as investment performance, quarterly. During the year STB engaged Cumpston Sargeant to conduct a review on JANA in respect of its role as investment manager for NTGPASS. The report, dated February 2015, concluded that: JANA’s asset sector returns generally track relevant indices quite closely; JANA’s investment performance for growth and defensive investment options neither consistently

outperforms nor consistently underperforms either its peers or the relevant indices; and JANA consistently has high quality communication of their strategies.The next review is due to be conducted in 2018.

Contribution Cap Summary There are no changes to contribution caps for 2015-16. The concessional contributions cap is $30 000 for everyone under age 50 and $35 000 for people aged 50 and over. Concessional contributions, such as salary sacrifice and employer contributions, are made from before tax income and are concessionally taxed at 15 per cent. From 1 July 2013, contributions that exceed the cap are taxed at an individual’s marginal tax rate, plus an interest charge. When a person’s annual income plus taxable superannuation contributions exceed $300 000, an additional 15 per cent tax is applied to the contributions over the $300 000 threshold.In addition to salary sacrifice contributions, for members of a defined benefit superannuation scheme, such as NTGPASS, a notional amount of employer contributions, known as notional taxed contributions, are treated as concessional contributions and count towards the cap. It is recommended that members take into account the notional taxed contribution (maximum 9.6 per cent of contributions salary) to ensure their salary sacrifice contributions do not exceed the concessional cap.The annual non-concessional contribution cap remains unchanged at $180 000, or $540 000 over three years for those aged under 65. Non-concessional contributions are contributions made from after-tax income, such as NTGPASS compulsory member contributions, spouse contributions and Commonwealth co-contributions.

Superannuation Office News

Successor Fund Transfer of NTGPASS PensionsAs foreshadowed in the 2013-14 Report to Members, NTGPASS account-based pension members were transferred under a successor fund transfer (SFT) to AustralianSuper on 1 February 2015. These former NTGPASS members are now members of AustralianSuper. Active or retained NTGPASS members wishing to commence an account-based pension, can do so through a fund offering such a product.

Successor Fund Transfer of NTGPASS Retained AccountsAs was advised to members in May 2015, Government has approved an SFT for NTGPASS retained accounts. Following a competitive review process, Sunsuper has been chosen as the successor fund.Sunsuper is a growing profit-for-members fund with over 1 million members and $30 billion of funds under management. It was set up in 1987 as a multi-industry superannuation fund to cater for virtually all workers. Sunsuper is the largest superannuation fund by membership in Queensland, and is one of the top 10 in Australia. Over 67 000 employers pay money into Sunsuper funds. Sunsuper’s website can be found at www.sunsuper.com.au. Sunsuper has offered a tailored solution to NTGPASS retained members. Specifically, NTGPASS members will be offered an extensive range of member services including financial advice at either no cost or low cost, free investment switching and the ability to check account balances online. Importantly, death, disability and income support insurance are also available at competitive rates.Further, Sunsuper has extremely competitive administration fees and has made a special offer to NTGPASS retained members that will see many members receiving lower fees and no members paying higher fees than their current NTGPASS fees on transition. In addition, there are no joining fees or other member costs associated with the transition. NTGPASS retained members will be provided details of Sunsuper’s offer closer to the transfer date.A dedicated webpage for the SFT is located under the NTGPASS Retained tab on the Superannuation Office website www.super.nt.gov.au. This page will be updated with advice on the progress of the SFT.

SeminarsMember information seminars were held in Darwin and Katherine in March 2015. Information was presented by staff of the Superannuation Office, JANA and the Department of Human Services, Financial Information Service (previously Centrelink). The presentation is available on the Superannuation Office website under the Seminar tab.

Superannuation Reform ProjectLegislation to implement a range of measures advised in the 2013-14 Report to Members was commenced in November 2014. Most changes were administrative in nature to provide efficiencies. A further change, to replace the Superannuation Review Board with the Northern Territory Civil and Administrative Tribunal, commenced on 1 July 2015.

Fee IncreasesTo cover a larger portion of scheme administration costs, fees for excess investment switches, family law valuations and family law splits increased with effect from 1 November 2014. A fee for making excess lump sum withdrawals from retained accounts was also introduced from that date. For similar reasons, account-keeping fees for accounts held by members who are not eligible employees (including retained and spouse members) increased from 1 January 2015 to $156 per annum ($3 per week). From 7 September 2015, a $35 fee has been introduced for requests to provide an estimate of NTGPASS entitlements. More information on fees is contained in the NTGPASS Fees fact sheet, which is available on our website.

Office Relocation The Superannuation Office has moved from Cavenagh House and is now located on Level 11, Charles Darwin Centre, 19 The Mall. All other contact details remain the same.

Your NTGPASS Benefit NTGPASS is a ‘split benefit’ lump sum scheme and your final NTGPASS benefit may comprise one or all of the following components. Your member accumulation account balance (your contributions and rollovers accumulated with

investment earnings). This component is included in all NTGPASS benefits. An accrued employer component. A prospective employer component is payable (subject to eligibility) under the age of 60 if you die

while an active member and are survived by a dependant, or if you retire on invalidity grounds. It is generally equal to 17.5 per cent of your benefit salary for each year of forgone service between the date of ceasing employment and age 65.

Accumulation AccountEach NTGPASS member has an accumulation account. Funds that can be credited to your accumulation account include salary sacrifice amounts, compulsory NTGPASS member contributions, personal or voluntary (after tax) contributions, spouse contributions and the Commonwealth co-contribution. When members resign or retire, their NTGPASS employer component can be retained in their accumulation account. However, this will no longer be possible after the SFT of retained accounts.

Employer ComponentAll active members of NTGPASS (contributing between 2 and 6 per cent of salary) have an employer-financed defined benefit. The benefit is calculated using the following formula:2.5% × total benefit points accrued during membership × benefit salaryEach 1 per cent of compulsory contributions made for a full year entitles a member to one benefit point. Apart from resignation benefits within the first 10 years of membership, each benefit point accrued during membership is worth 2.5 per cent of your benefit salary when a member leaves the scheme.As an active member, you can maximise the final employer component of your benefit by contributing at the higher contribution rates. The more benefit points you accrue, the greater your final benefit. As the NTGPASS salary is based on a formula that includes your benefit salary, a reduction in your benefit salary prior to you ceasing employment will affect your final employer component. Your benefit salary is the average of your last three contribution salaries. Part-time salaries are converted to full-time equivalent salaries when a benefit salary is calculated. To bring your benefit salary up to current values, it is indexed in accordance with the movements in average weekly earnings (AWE). Because this movement fluctuates, your benefit salary may go up or down depending on the prevailing AWE factor at the time you cease employment.

Superannuation Trustee BoardSTB is a nine-member board representing three schemes: NTGPASS; Legislative Assembly Members’ Superannuation Scheme; and Northern Territory Police Supplementary Benefit Scheme. Members during 2014-15: Kathleen Robinson (Chairperson); Marianne McAdie (Deputy Chairperson); Jodie Ryan (Member, Under Treasurer); Michael Martin (Member, nominated by Unions NT); Naomi Porrovecchio (Member, nominated by Unions NT); Alex Pollon (Member, nominated by the Under Treasurer); Vicky Coleman (Member, nominated by the Under Treasurer); Mark McAdie (Member, nominated by Commissioner of Police); and Gowan Carter (Member, nominated by Northern Territory Police Association).The STB is responsible for investing members’ money held in their accumulation accounts. It met on four occasions during the year. STB associated costs are attributed to the three funds administered according to the value of funds under management. STB expenses totalled $70 970, of which $66 297 was attributed to NTGPASS.

Financial InformationA summary of the 2014-15 financial statements is provided below. The statements are audited by the Auditor-General and her opinion is published in the NTGPASS Annual Report, which is tabled in

Parliament. CHANGES IN NET ASSETS in the financial year ending 30 June

STATEMENT OF NET ASSETSas at 30 June

2015 2014 2015 2014$000 $000 $000 $000

NET ASSETS ON 1 JULY 988 244 877 277 AssetsRevenue Units in life policies 947 297 1 007

490Member contributions 27 667 61 871 Super Loans Trust 635 792Territory contributions 74 193 81 323 Cash at bank 368 1 531Transfers and rollovers 80 061 78 642 Receivables 15 222 18 070Investment revenue 97 232 118 332 TOTAL ASSETS 963 522 1 027

883Interest 109 237 LiabilitiesTOTAL REVENUE 279 262 340 405 Benefits payable 28 780 33 179Expenditure Taxation 3 222 4 575Benefits paid 331 188 218 505 Other liabilities 1 656 1 885Income tax expense 5 577 10 431 TOTAL LIABILITIES 33 658 39 639Contributions surcharge 45 65 NET ASSETS OF THE

FUND929 864 988 244

Other expenses 832 437TOTAL EXPENDITURE 337 642 229 438NET ASSETS ON 30 JUNE 929 864 988 244Please note that the 2015 abridged financial information provided on this page has been extracted from the audited financial statements. The full 2015 financial statements are included in the NTGPASS Annual Report, available on the Superannuation Office website.

Review of DecisionsIf you are dissatisfied with a decision regarding your scheme membership or superannuation entitlement, you can ask the Commissioner of Superannuation to reconsider the decision. If dissatisfied with the outcome, you can lodge an appeal. Up until 30 June 2015, this was to the Superannuation Review Board. Legislation has been amended and from 1 July 2015, appeals can now be made to the Civil and Administrative Tribunal.

More Information Further information about the scheme is available in the NTGPASS Annual Report. Forms, fact sheets and other publications can be obtained by visiting our website. You can contact our staff by phone or email.

Superannuation OfficeLocation: Level 11, Charles Darwin Centre, 19 The Mall, Darwin NT 0800Postal address: GPO Box 4675, Darwin NT 0801Free call: 1800 631 630 Telephone: +61 8 8901 4200Fax: +61 8 8901 4222Website: www.super.nt.gov.auEmail: ntsuperannuation@nt.gov.au