Corporate governance
Home Who runs Qantas Super? Corporate governance
Exemplary governance is one of the core foundations of our business strategy.
This regulates everything we do, including how objectives are set and achieved, how risk is monitored and assessed and how performance is optimised.
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Governing documents
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Nomination, appointment and removal of trustee directors
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Actuarial report
The latest actuarial report into Qantas Super (as at 30 June 2019) was prepared by Towers Watson Australia Pty Ltd.
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Conflicts management
One of our obligations is to ensure we manage any real or perceived conflicts when it comes to directors or executives undertaking their roles.
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Proxy voting
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Remuneration report
Significant and material change notices
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2019
August (Gateway super accounts and Divisions 3A, 6, 7, and 10)
- Significant event notice:
- Lower fees
- Fees capped on low-balance accounts
- Exit fee scrapped
- Changes to insurance
- Premiums for income protection cover reduced
- Insurance will be cancelled for inactive accounts
- Continuing insurance cover while on unpaid parental leave and leave of absence
- Some older members to be exempt from the ‘work test’
- Inactive low-balance accounts to be transferred to the ATO
- Lower fees
August (Gateway income accounts and Divisions 1, 2, 3, 5, and 15)
- Significant event notice:
- Lower fees
- Fees capped on low-balance accounts
- Exit fee scrapped
- Some older members to be exempt from the ‘work test’
- Inactive low-balance accounts to be transferred to the ATO
- Lower fees
- Significant event notice:
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2018
September-October (Divisions 6, 7 and Gateway)
- Significant Event Notice: Reduction in administration fee from 1 October 2018
August-September (all members)
- Removal of term deposit option
June (all members)
- Introduction of Insurance in Superannuation Code of Practice
March (all members)
- Change to Cash investment option
- Quitting investment in tobacco
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2017
December (all members)
- Annual Report 2017
September (Gateway Division)
- Significant Event Notice:
- You’ll be covered by automatic income protection
- Some conditions or definitions have changed
September (Divisions 3A, Gateway)
- Significant Event Notice: Important updates to your insurance. Some conditions or definitions have changed
September (Division 10)
- Significant Event Notice: Important updates to your insurance
- You’ll be covered by automatic income protection
- You can opt out of your Standard Cover
- The way your insurance cover is calculated is changing
- Some conditions or definitions have changed
September (Division 7: Network Aviation)
- Significant Event Notice: Important updates to your insurance
- You can opt out of your Standard Cover
- The way your insurance cover is calculated is changing
- Some conditions or definitions have changed
September (Division 7)
- Significant Event Notice: Important updates to your insurance
- You’ll be covered by automatic income protection
- You can opt out of your Standard Cover
- The way your insurance cover is calculated is changing
- Some conditions or definitions have changed
September (Division 6)
- Significant Event Notice: Important updates to your insurance
- You can opt out of your Standard Cover
- The way your insurance cover is calculated is changing
- Some conditions or definitions have changed
September (Division 5)
- Significant Event Notice: Important updates to your insurance
- You can opt out of your Standard Cover
- The way your insurance cover is calculated is changing
- Some conditions or definitions have changed
September (Divisions 1, 2, 3, 3AN, 4, 12, 15)
- Significant Event Notice: Important updates to your insurance
- Some conditions or definitions have changed
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2016
December (all members)
- Proposed super reforms are now law
- Pension payments – changes to assets test from 1 Jan 2017
October (all members)
- Annual Report 2016
- Super Update
- Significant Event Notice:
- Changing the way we keep in touch
- Changes to rules for automatic transfer out of Qantas Super
- Aligning waiting periods for income protection cover
- Change to terminal illness definition
May (Remaining members in Divisions 3A, 6, 7, and 10, with accrued default amounts)
- Final opportunity for members with accrued default amounts to opt out of automatic transfer to Gateway
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2015
December (all members)
- Annual Report 2015
- Super Update – Our new retirement calculator; introducing new CEO, estate planning; a reminder about tax implications on making withdrawals from super; Super 101; Q&As: Terminal illness benefit
December (Division 15)
- Division 15 Q&A
September (all members)
- Super Update – Upcoming changes; Best Doctors feature; new retirement solution; changes to pensions in Federal Budget 2015-2016; change to QROPs requirements; 12 month portability rule for Gateway; Qantas Super CEO to retire; member-elected Group C Director reappointed; insurance through your super
- Investment Updates – Introducing Glidepath; choose a mix of investment options; simplifying names of investment options; strategic investment review outcomes (change of terminology for asset classes); managing our currency exposure; changes to investment objectives, time horizons and growth/defensive splits
- Insurance Updates – New features for Voluntary Cover in Gateway; reminder to Division 8 members to make their choice; life events feature; change to terminal illness legislation; eligibility for income protection (Gateway); clarification of eligibility for $750,000 Voluntary Cover; total and permanent disablement definitions; new insurance features for Division 15 members
August (Default members in Divisions 3A, 5, 6, 7, 10, and Gateway)
- Default members to be automatically invested in Glidepath, Qantas Super’s new default investment option
August (Division 9 and 14)
- Retirement and transition to retirement accounts will automatically become Income Accounts in Gateway
July (all members)
- Managing our currency exposure
- UK pension fund requirements changing
May (Division 7)
- Administration fee increase
- Increase in cost of any Voluntary Cover
- Timing of deductions
May (Division 6)
- Administration fee increase
- Increase in cost of Standard Cover for income protection and any Voluntary Cover
- Timing of deductions
May (Gateway Division)
- Increase in administration fees
- Increase in cost of Basic Cover for income protection and any Voluntary Cover
- Timing of deductions
May (Division 8)
- Transfer from Division 8 to Gateway
May (all members)
- Gateway as the new retained benefits offer for all members
- Administration fee increases
- Increases in premiums for income protection and Voluntary Cover
- Timing of deductions
- Important changes from 1 July 2015
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2014
December (Divisions 1, 2, 3)
- Changing the way defined benefit assets are invested
November (Division 15 AaE)
- Transfer from APSS to Qantas Super
September (Divisions 6, 7, 8, 9, 14 and Gateway)
- Administration fee rebate
September (all members)
- Abolition of the Low Income Superannuation Contribution and rephrasing of the Superannuation Guarantee
August (Certain members in Divisions 1, 2 and all members in Divisions 4 and 12)
- Introduction of member investment choice
July (all members)
- Increase in Medicare Levy
- Dropping the APRA levy for 2014/2015
- Weekly Credited Interest Rates
- New superannuation rates and thresholds for 2014/2015
July (Divisions where member investment choice applies)
- Weekly investment switching
July (Divisions 1, 2, 3 and 12)
- Important changes to insurance for Defined Benefit divisions
April (all members)
- Update to our Privacy Policy
- Completion of transition to new administrator
March (all members)
- Launch of financial advice offer
- Change to distribution of death benefits for binding nominations
March (Divisions 7, 8, 9, 10, 14 and Gateway)
- New product disclosure statements
March (Division 8)
- Removal of minimum withdrawal amount
- Removal of maximum number of withdrawals per year
February (all members)
- Change in administrator – limited services period has ended. New PIN to be issued
January (Gateway Essentials Division)
- Fee caps for Gateway Essentials
January (all members)
- Change in the administration of the voluntary insurance tax deduction
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2013
December (all members)
- Information about our new administrator, including new contact details
- Updated Financial Services Guide
- Limited service period as we change administrator
- New requirements for handling complaints
- New time limits for lodging an SCT complaint for decisions made by Trustee from 1/7/2013
December (members in Divisions 6 and 7 with accrued default amounts)
- Future of your super
November (Divisions 3A, 5, 6, 7 and 10)
- Final notice about accrued fault account transfer
October (Division 11)
- Division 11 closing with members being transferred to Gateway
October (Division 8)
- Fee changes
September (all members)
- Appointment of new administrator
- Accepting transfers to Kiwisaver
September (members in Divisions 3A, 5, 6, 7 and 10 with accrued default amounts)
- Future of your super
July (all members)
- Launch of Best Doctors service
- Funding a new operational risk reserve
- Changes to Superannuation Guarantee contributions
- Additional Funding Plan update (relevant to DB members)
- Launch of Gateway division
- Introduction of Operational Risk Reserve (deduction from credited rates)
- Removal of Member Protection for small accounts
July (Divisions 6, 7 and 8)
- Administration fee
July (Divisions 3A, 5, 6, 7 and 10)
- New insurer
- Exclusion for pre-existing medical conditions removed
- New conditions and features
- New definitions for disablement benefits and TPD
- Insurance premiums
July (all members except those in Gateway Division)
- Change to strategic asset allocation for Aggressive option
July (Gateway Division)
- Stamp duty payable on income protection premiums
July (Divisions 5 and 6)
- Stamp duty payable on temporary disability premiums
July (Division 8)
- Exit fee
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2012
December (Divisions 5, 6, 7, 8 and 10)
- Introduction of term deposit option
October (all members)
- Interim credited interest rates determined weekly (previously monthly)
July (all members)
- Reduction of higher tax concession for contributions of very high income earners
- Reduction in Federal Government co-contribution
- Government contribution for low income earners confirmed
- Introduction of BPAY option
- More flexibility for members with additional voluntary insurance cover
- Interim credited interest rates determined weekly (previously monthly)
July (Divisions 9 and 14)
- Pension draw down relief continues in 2012/2013
Insurance in Superannuation Voluntary Code of Practice
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Our progress in adopting the Insurance in Super Voluntary Code of Practice (October 2019)
In December 2018 we let you know our plan for adopting the Insurance in Superannuation Voluntary Code of Practice.
Focused on core principles including transparency, fairness, respect, and honesty, the Code was developed by the superannuation industry to improve the insurance offered to super fund members, and to help members better understand the insured benefits they have.
The Code came into effect on 1 July 2018, and super funds who choose to adopt the Code have until 30 June 2021 to become compliant with it.
We already comply with large parts of the Code; below is a summary of our progress to date:
What has Qantas Super implemented so far?
We’ve implemented everything we had in our transition plan to complete by 30 June 2019.
We’ve worked with our insurer and administrator to introduce:
- Additional options to make it easier for you to reduce, cancel and change your insurance cover. You can now change your cover over the phone or through our website;
- A refund of your premiums, if you cancel your insurance within 14 days of being notified that you’ve received automatic cover;
- A new process to ask permission to check if you already have cover with another super fund when you join Qantas Super; and
- Shorter timeframes when responding to insurance-related enquiries and complaints, and shorter timeframes when assessing claims.
Our goal for the rest of this financial year is to implement the rest of our transition plan. By 30 June 2020, we will:
- Comply with new requirements to communicate your insurance benefits to you, to make it easier for you to understand the benefits that you have; and
- Monitor our compliance with the Code, and report this back to you in the annual Code compliance report published on our website.
Code requirement to consider younger members
The Code states that consideration must be given to appropriate levels of cover and premiums for younger members.
We had advised in our transition plan that we would be unable to comply with this requirement, because our premium rates for income protection cover did not vary by age.
We are pleased to report that, since then, we’ve worked with our insurer to reduce premiums for income protection cover for our younger members. From 1 July 2019, members aged below 45 will receive a reduction in their premiums.
This change means that we now comply with the Code requirement.
Important notes
The statements above reflect the current transition plan that is based on our expectations at the date of publishing. These expectations are entirely subject to change as we proceed through the transition process. You will be kept informed of our progress in implementing the Code.
The current benefits to which members are entitled are as set out in the Trust Deed and Rules and relevant member disclosure documents. Legislative provisions also provide protection to members for insurance benefits. The Code does not override these provisions.
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Our plan for transitioning to new insurance code of practice (December 2018)
The Insurance in Superannuation Voluntary Code of Practice came into effect on 1 July 2018. The Code has been developed by the superannuation industry to improve the insurance offered to you as a super fund member and to help you to better understand the insured benefits you have. For these reasons we are supportive of the Code and have started to implement it. Super funds who adopt the Code have until 30 June 2021 to become compliant with it.
When will Qantas Super comply with the Code?
We already comply with large parts of the Code, which includes providing a straight forward claims experience if you need to make a claim. We are currently working with our insurer and administrator to make the necessary adjustments to comply with other Code requirements. Our expected timing for the adoption of key sections of the Code is:
By 30 June 2019:
- we will provide additional options on how to cancel, reduce or change your cover if you wish;
- we will ask your permission to help you work out if you have any other insurance cover in another super fund;
- we will comply with the requirements to allow the reinstatement of cover if you ask us to do so within a specific period of being cancelled; and
- we will comply with new timeframes to respond to you if you have an enquiry or wish to make a complaint.
By 30 June 2020:
- we will comply with new requirements to communicate your insurance benefits to you, to make it easier for you to understand the benefits that you have; and
- we will monitor our compliance with the Code and report to you in the annual Code compliance report published on our website.
As the Code is voluntary, we will adopt the parts of the Code that we believe are in our members’ best interests. Below is a summary of two aspects that we will not adopt in full:
1. Code requirement that premiums are less than 1% of salary
In some divisions the average cost of automatic insurance cover, over a working lifetime, is more than 1% of salary. We are mindful that insurance premiums which are deducted from members’ accounts reduce super benefits, however we believe this remains appropriate as:
- unlike many other superannuation funds, we provide automatic cover for income protection, as well as death and total and permanent disablement (TPD),
- a significant proportion of our members would find it difficult to obtain TPD and income protection cover outside of Qantas Super at reasonable rates, due to the high risk nature of their occupations; and
- the insurance benefits that you automatically receive are tailored to you based on your salary, and set at a level to adequately protect your family and your lifestyle, at a reasonable cost.
2. Code requirement to consider younger members
The Code states that consideration must be given to appropriate levels of cover and premiums for younger members.
Historically the premium rates for income protection have not varied by age. We recently reviewed this practice and confirmed that it was preferable for our members to have fixed premium rates for all ages to avoid the very sharp increase in premium rates that would otherwise occur at older ages. We will continue to review our premium rates.
Important notes
The statements above reflect the current transition plan that is based on our expectations at the date of publishing. These expectations are entirely subject to change as we proceed through the transition process. You will be kept informed of our progress in implementing the Code.
The current benefits to which members are entitled are as set out in the Trust Deed and Rules and relevant member disclosure documents. Legislative provisions also provide protection to members for insurance benefits. The Code does not override these provisions.
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Protecting you. Protecting your super. (June 2018)
On 1 July 2018, the Insurance in Superannuation Voluntary Code of Practice comes into effect.
What is the code?
The code was developed by the industry for two key reasons:- to improve the insurance offered to super fund members; and
- to help members better understand the insured benefits they have in super.
What’s Qantas Super’s position on the code?
We know that, for many Qantas Super members, the insurance benefits provided as part of your super are important. We believe the code is generally aligned to the interests of members. The code also contains a range of principles, including transparency, fairness, respect, honesty, and timelines that we believe are appropriate.We’ve conducted a preliminary analysis of the code’s key requirements and have identified a number of changes that would have to be made to our current insurance arrangements to allow us to implement the standards of the code.
In order to make those changes, we’ll need the support of our insurer as well as our other service providers. Most importantly, as a fund, we must also ensure that any changes we make are consistent with our legal obligations, including to act in the best interests of our members as a whole. If we determine that any of the changes are not appropriate, or may not be consistent with our legal obligations to members, we may decide not to adopt those requirements of the code.
Next steps for Qantas Super
Subject to these qualifications, we have decided that, in principle, we intend to start adopting the code from 1 July 2018.By 31 December 2018, we’ll share our proposed transition plan to become compliant with those standards of the code that are consistent with our legal duties, and the extent to which we expect to comply with all the standards. Funds that adopt the code have until 30 June 2021 to comply with it.
We’ll regularly review our adoption of the code, including when there are any changes that are made, to ensure we continue to act in accordance with our legal obligations to members.
What you need to do
Nothing. We’re simply letting you know what we’re doing as a fund that’s committed to its members and to improving your confidence in your financial future.
Service providers
Service providers that may affect a material business activity at Qantas Super.
| Service | Provider | ABN |
|---|---|---|
| Master Custodian | J P Morgan Chase NA | 43074112011 |
| Internal auditor | KPMG | 51194660183 |
| Administrator | Mercer Outsourcing (Australia) Pty Ltd | 83068908912 |
| Shared services | Qantas Airways Ltd | 16009661901 |
| Centralised Portfolio Management / Investment Manager | Parametric Portfolio Associates LLC | 89153743894 |
| Investment Manager | Palisade Investment Partners Limited | 68010529665 |
| Investment Manager | ROC Capital Pty Ltd | 37167858764 |
| Investment Manager | Bain Capital Credit, LP | N/A |
| Investment Manager | Ardea Investment Management Pty Ltd | 50132902722 |
| Investment Manager | Pendal Institutional Ltd | 17126390627 |
| Investment Manager | H20 Asset Management LLP | N/A |
| Investment Manager | Ellerston Capital Limited | 34110397674 |
| Investment Manager | Campbell Global, LLC | N/A |
| Investment Manager | AXA Investment Managers Asia (Singapore) Ltd | 115203622 |
| Investment Manager | Jamieson Coote Bonds Pty Ltd | 165890282 |
| Investment Manager | Metrics Credit Partners Pty Ltd | 150646996 |
| Investment Manager | Insight Investment Management (Global) Limited | N/A |
| Investment Manager | Longreach Alternatives Ltd | 25082852364 |
- Master CustodianProviderJ P Morgan Chase NAABN43074112011
- Internal auditorProviderKPMGABN51194660183
- AdministratorProviderMercer Outsourcing (Australia) Pty LtdABN83068908912
- Shared servicesProviderQantas Airways LtdABN16009661901
- Centralised Portfolio Management / Investment ManagerProviderParametric Portfolio Associates LLCABN89153743894
- Investment ManagerProviderPalisade Investment Partners LimitedABN68010529665
- Investment ManagerProviderROC Capital Pty LtdABN37167858764
- Investment ManagerProviderBain Capital Credit, LPABNN/A
- Investment ManagerProviderArdea Investment Management Pty LtdABN50132902722
- Investment ManagerProviderPendal Institutional LtdABN17126390627
- Investment ManagerProviderH20 Asset Management LLPABNN/A
- Investment ManagerProviderEllerston Capital LimitedABN34110397674
- Investment ManagerProviderCampbell Global, LLCABNN/A
- Investment ManagerProviderAXA Investment Managers Asia (Singapore) LtdABN115203622
- Investment ManagerProviderJamieson Coote Bonds Pty LtdABN165890282
- Investment ManagerProviderMetrics Credit Partners Pty LtdABN150646996
- Investment ManagerProviderInsight Investment Management (Global) LimitedABNN/A
- Investment ManagerProviderLongreach Alternatives LtdABN25082852364
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