SuperTalk Edition 17

AIST Member Newsletter

Edition 17 – July 2015

Real face of retirement US Data Study Tour

Profile: Neil Cassidy

Insurance as an opportunity

Trustees of the Year

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26

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CONTENTS

AIST Member Newsletter Edition 17 – July 2015 From the CEO 02 Super news 03 Cover Story – Real face of retirement 10 Why data in insurance matters 15

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US data study tour 16 Data is the new battleground 21 Profile: Neil Cassidy 22 CMSF 2015 24 Insurance as an opportunity 26

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Trustees of the year 27 5 minutes with Louise Davidson 28 Mavis Robertson tribute 29 Indigenous super summit 31 Member news 32

22 EDITORIAL:

COPYRIGHT:

Editorial Team: Janet de Silva and Sarah Goodwin Further info 03 8677 3800, sgoodwin@aist.asn.au

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopied, recorded or otherwise without the permission of the publisher.

Graphic Design: Renae Tindill

DISCLAIMER:

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AIST does not necessarily recommend the products and services advertised in SuperTalk. All details were correct at the time of printing.

SUPERTALK – July 2015

01

From the

CEO

It’s often said that there is never a dull moment when you work in superannuation. Certainly on the superannuation policy front, several issues currently being debated across the industry, Parliament and the wider community have kept AIST very busy for the past few months.

Many of these issues go to the heart of what makes not-for-profit superannuation different from the rest.

The recent move by the Government to force structural change to the boards of not-forprofit superannuation funds, for example, is a particular concern.

The proposed changes – which include the requirement to appoint a minimum of one third independent directors – will impact the boards of just about every AIST member fund. Should the changes pass through Parliament, more than 200 independent directors may need to be appointed in a relatively short transition period of just three years.

This will not only be disruptive for our sector, it will be a cost ultimately borne by the members.

AIST is not opposed to independent directors. There are many independent directors on the boards of not-for-profit funds who have added great value to our sector, working alongside member and employer directors appointed through the equal representation system.

However, there is no evidence that mandating independence improves governance or that the equal representation is not delivering for fund members.

Indeed, some academic research suggests that equal representation 02 SUPERTALK – July 2015

–with its emphasis on putting members’ interests above all others – has played a key role in the outperformance of not-for-profit super funds.

What matters most to super fund members, is getting the best directors with the right skill set for their board. We strongly believe that the equal representation, together with flexibility around independence, delivers this.

FOCUS ON FAIRNESS AIST is also moving to finalise our second submission to the Government’s tax inquiry. This is another area of reform where AIST’s views are quite different from other parts of the financial services sector.

In recent times we have been very vocal on the need to improve the fairness of our superannuation system, particularly as the Government has recently moved to tighten the eligibility of the Age Pension.

While it is certainly true that everybody’s definition of “fair” is different, AIST believes the current system of super tax concessions is providing a benefit to high income earners that goes beyond the purpose of retirement. As it stands now, the top 10 per cent of income earners receive hundreds of thousands of dollars more in Government support for their retirement income than everybody else. Meanwhile, the Government’s plan to scrap the Low Income Super Contribution rebate from 2017 will see the super contributions of millions of workers taxed at a higher

Tom Garcia Chief Executive Officer AIST

rate than their take home pay.

AIST is currently road-testing a range of policies through our recently-developed AISTMercer Super Tracker tool.

Importantly, this tool will enable us to make evidence-based policy recommendations and to assess their impact on sustainability, adequacy, gender bias and, most importantly, fairness.

As with any reform process, there are also important factors to consider such as ease of implementation and whether grandfathering provisions may need to be put in place. It is impractical to develop ‘solutions’ that cannot be effectively implemented by funds, administrators and regulators, or implement immediate changes that will adversely affect members.

2015 is shaping up to be a significant year for superannuation policy and the not-for-profit sector.

With the commitment of AIST’s policy team, our policy committee, together with the ongoing input we receive from across our membership, I am confident that any changes AIST recommends will be the right ones for your fund’s members and the future our super system.

Key representatives from the super industry have committed to investigating ways to improve the collection of data from Indigenous members following the inaugural Indigenous Super Summit, held in Melbourne last month.

The Summit – an initiative of the Indigenous Superannuation Working Group – was attended by nearly 100 representatives from the super industry, Indigenous communities, consumer groups and government agencies.

Eva Scheerlinck, Chair of the Working Group and AIST’s executive manager, leadership & governance, said the Summit recognised that for superannuation to be truly universally successful, more needed to be done to address the needs of Aboriginal and Torres Strait Islander people in the system.

“There are a range of challenges facing Indigenous communities in regards to superannuation that are too often placed in the too-hard basket,” Ms Scheerlinck said. “The Summit has helped identify the key priorities for the Indigenous community and there is now a collective will to develop practical solutions.”

The momentum created by the Summit and the clear good-will of those that participated will progressively result in improved outcomes Ms Scheerlinck said that improving the collection of data from Indigenous members was an important step but there was also a need to ensure Indigenous members could feel comfortable if they did disclose their origin.

SUPER NEWS

SUPER INDUSTRY MOVES TO IMPROVE INDIGENOUS OUTCOMES

The Indigenous Superannuation Working Group is a cross-industry commitment to effectively establishing and meeting the needs of Aboriginal and Torres Strait Islander people.

“Indigenous members need to be assured that providing data will not lead to discrimination – whether it is through insurance, customer service or even their employer – the information would need to be quarantined so it is only available for positive outcomes,” said Ms Scheerlinck.

Ms Scheerlinck also said one of the big barriers to improving superannuation outcomes for Indigenous people was the strict identification requirements involved in accessing benefits.

“Registration of births, the changing of names and remoteness in some cases are all issues faced

by Indigenous superannuation consumers that differ from challenges in the non-Indigenous community,” Ms Scheerlinck said.

A member of the Working Group, a Summit panel member and speaker at the event, Trevor Pearce, CEO of First Nations Foundation, said the engagement problems with super were particularly acute in remote communities.

“The specific administrative requirements often fail to match the circumstances and needs of Indigenous Australians, particularly

those in remote areas who may have difficulty communicating with their superannuation fund, claiming benefits or identifying lost accounts.

It’s long overdue for the Indigenous community and government agencies to start meaningful engagement with the industry on these challenging issues,” he said.

Other outcomes from the Summit included a focus on introducing greater flexibility into super funds’ identification requirements for Indigenous people who may not have access to standard forms of ID and a commitment to greater cooperation across the represented stakeholder group.

The outcomes of the Summit will feature in a report to be sent to all participants and other interested parties.

Members wanting further information can contact AIST Executive Manager, Leadership & Governance Eva Scheerlinck at escheerlinck@aist.asn.au Check out photos from the day on page 31

SUPERTALK – July 2015

03

SUPER NEWS

VALE PHIL SPATHIS ACSI co-founder and partner of the former IFS Legal Phil Spathis sadly passed away on June 6 following a lengthy illness.

Phil was a driving force behind ACSI, working alongside the late Michael O’Sullivan to establish the organisation. Phil was the sole staff member of ACSI in the early years and his determined work and leadership built the organisation to be a recognised voice on corporate governance in Australia and internationally. He also contributed to the wider superannuation community through his role as a partner at IFS Legal and his various collaborations with AIST. Phil’s great ability to unite people to a common cause was highlighted by his work on many campaigns at ACSI. These included the successful legal case mounted against Rupert Murdoch’s News

Corporation in 2006 after the breach of an agreement with its shareholders.

In this ground-breaking case, Phil worked to bring together superannuation funds in Australia, and investors across the globe, to successfully sue News Corporation in a Delaware court where one presiding judge noted that ‘News Corp thus finds itself in a stew of its own making.’ A testament to Phil’s approach, he maintained both the trust and friendship of the funds across the globe who had supported the campaign.

A statement from ACSI described Phil’s unique ability to connect with people from a wide range of backgrounds and to unite them behind a common cause.

“In superannuation and corporate governance circles, Phil’s friendship was valued as well as his

ACSI co-founder and IFS Legal partner Phil Spathis

expert opinion. He provided counsel and mentorship to a wide range of people. He was warm, funny and generous with his time. He will be deeply missed,” said the statement.

ACSI and AIST extend their deepest sympathy to Phil’s wife Yvonne, his children Arthur and Athena, and his extended family.

EQUIP EXPANDS EXECUTIVE TEAM Equip has expanded its executive team to include an Executive Officer of Liability Management. The role – recently filled by Troy Rieck – will oversee liability management of Equip’s investment portfolios, initially focusing on the fund’s substantial defined benefits.

Equip’s CEO, Danielle Press, said the appointment would enable the fund to maintain a leadership position in defined benefits, particularly in communications and product development to help members to achieve their personal retirement income goals.

“In defined benefit, Troy will work with the fund actuary and our employers to provide more tailored investment solutions for those schemes as their ageing

04 SUPERTALK – July 2015

membership demographic moves closer to retirement.

“Troy will also add considerable strength to the development of our capabilities in outcome investing, working with our financial planners to provide a more holistic wealth offering to our high net worth members,” Ms Press said.

Ms Press added that the third primary objective of the new executive role was to focus on outcome investing for accumulation members, where Equip wanted to develop the capability to manage portfolios aligned to individual retirement income targets.

Mr Rieck was previously Executive Manager, Investment Advice at Suncorp and before that with the Queensland Investment

Troy Rieck, Executive Officer of Liability Management, Equip

Corporation (QIC) running the capital markets division.

About one third of Equip’s $7 billion of assets are held in defined benefits.

Tasplan Director Roz Madsen has been recognised for her outstanding contribution to improving the working lives of women through her induction into the Tasmanian Honour Roll of Women.

Established by the Tasmanian Government, the Honour Roll recognises women and women’s organisations that have made a significant contribution in their field of endeavour.

Ms Madsen’s achievements in advancing social justice in areas such as improved parental leave provisions, breastfeeding/ expressing conditions and family violence leave on public sector award, were acknowledged.

“Although I am extremely proud of the achievements for working

people that I have been involved in, I am humbled by being in company with the other outstanding women on the Honour Roll,” said Ms Madsen.

“In my ideal world, there are no gender-based pay and super gaps.

There is also equal participation of women at director and executive level within the superannuation sector.”

Tasplan Chair Naomi Edwards said the induction was well deserved.

“The Honour Roll is reserved for a very special group of Tasmanian women and Roz’s colleagues here at Tasplan are proud to see her recognised,” said Ms Edwards. “Our members benefit from her expertise and passionate

SUPER NEWS

TASPLAN DIRECTOR INDUCTED INTO TASMANIAN HONOUR ROLL OF WOMEN

Tasplan Director Roz Madsen

pursuit of good outcomes for working people. She is also a respected and valued member of the Tasplan Board.”

UNISUPER TRY NEW TAKE ON LEGAL, RISK, COMPLIANCE AND GOVERNANCE A recent restructure at UniSuper has dispensed with traditional centralised compliance models. The changes – in February this year – have combined the former Legal, Risk and Compliance teams and Company Secretariat to form a new client-focused team – Risk and Legal Services.

Chief Risk and Legal Officer Sean Hughes said the purpose of the restructure was to re-position and enhance the way that UniSuper utilised its legal, risk, compliance and governance services.

“The exciting growth of UniSuper, its business lines and its products means that we need to utilise our existing resources far more efficiently and to grow in our maturity to enable us to address the full spectrum of investment management, financial advice and administration risks arising from all the in-house services which we provide for our members,” said Mr Hughes.

The new function has dedicated, embedded business partner teams, some of which are aligned to internal business clients, while other teams provide core company-wide assurance and governance support.

This structure recognises UniSuper’s unique insourcing business model while breaking down silos and ensuring alignment with each business unit’s purpose and objective.

The restructure has assigned dedicated risk and legal teams to each business.

“By assigning dedicated risk and legal teams to each business unit we can build closer relationships, develop core expertise and be more responsive to the individual needs of our internal clients, and our members,” said Mr Hughes.

“This model enhances UniSuper’s risk maturity by more clearly defining roles and responsibilities along the three lines of assurance spectrum,” said Mr Hughes. “It’s about being accessible, visible and responsive to whatever assistance the business needs and whenever they need it. Ultimately, this is about creating greater assurance that we can all meet our legal and regulatory obligations, as well as take appropriate risks to maximise opportunities for our members’ benefit.”

SUPERTALK – July 2015

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SUPER NEWS

25 YEARS OF TELSTRA SUPER Telstra Super – Australia’s largest corporate superannuation fund – has celebrated its 25th anniversary this month.

Established in 1990 as the ‘Telecom Superannuation Scheme,’ the fund comprised just under 19,000 Telecom employees. Today, there are approximately 100,000 Telstra Super members, following a name change and fund membership being opened to former employees and families of current members.

Chris Davies, who became Telstra Super’s Chief Executive Officer in 2014, is only the third CEO in the fund’s history.

“We are proud of the fund’s achievements over the past 25 years. As a not-for-profit, we exist to help members of the Telstra family build a financially secure future and we put our members first,” said Mr Davies.

Along the way, the fund has launched its MySuper option and introduced a portfolio of diversified investment options for members. In 2015, Telstra Super was responsible for over $17 billion in assets.

“Our success is also a tribute to Telstra Super Financial Planning, which offers expertise in all aspects of superannuation-related advice.

Chris Davies, CEO Telstra Super

The high calibre of Telstra Super employees ensures that a united team will continue to provide our members with first-class benefits and services,” said Mr Davies.

SHARPENING THE MESSAGE – WHAT MAKES US DIFFERENT? A recent presentation at the AIST Engagement Ideas Exchange has urged delegates to critique their fund pitch prior to meeting with potential new employers.

Speaking at the event in Melbourne, Ian Fryer, head of research at Chant West, called on funds to consider new distribution channels and tell a better story of who they are. Funds were also advised to think about what their fund does differently to other sectors then explain it with purpose.

“The next five to ten years is going to be a time when it’s all about winning the hearts and minds of members. Increasingly things like modern awards will become less important. Employers will be making important decisions and individuals will be making decisions,” said Mr Fryer.

According to Mr Fryer, funds need to move away from more simplistic messaging and think harder to effectively communicate why their differences are valuable.

“In everything that you do, ask the ‘so what’ question – if you’re profit to members what does that

06 SUPERTALK – July 2015

mean? Equal representation? So what? Why does that make you different? Why is that good?”

Mr Fryer said that funds should be spending more time ensuring their pitches were targeted, polished, rehearsed and critiqued.

“There’s a thought that we’re just going to get someone along to talk about the fund but you need to use the right people, have ruthless internal critique, and even get external input on presenting.”

“We need to learn to sell in a competitive world. Use concrete examples – don’t just say ‘our member services are better’ – show a campaign you’ve done and tell them how 20 per cent of your members are now better off because of it,” he said.

AustralianSuper senior business development manager, Ian Pepper, agreed that a fund’s pitch could make a big difference, adding that his fund took pitch preparation very seriously.

“We meet at the boardroom and do everything; we hand the folders out, start the computer up, open up the software package,

Ian Fryer, Chant West and Ian Pepper, AustralianSuper speaking at the Engagement Ideas Exchange

make sure it works, the lot. If it’s important enough to use a pitch for it, rehearse it and it will pay you dividends,” said Mr Pepper.

“We’ve invested money into getting organisations to help us tailor our messaging, including the packaging we use to send things out. It makes a really good first impression and that makes a huge difference,” he added.

Sunsuper has made an impact in the online media space with the launch of a video called ‘#TheRWord’ that features a female comedian challenging the view of retirees as cardigan and slacks-wearing, bowls and bridge playing, knitters.

The video – which has had more than 600,000 views since launch – complements the launch of their innovative online education site called ‘The Dream Project’ which contains a range of tools, resources and inspiration to engage with members and help redefine their traditional views of retirement. Since launching last month, the site has had more than 43,000 page views.

Sunsuper’s Customer Experience and Insights Executive General Manager Teifi Whatley said the Dream Project was recognition that many of the fund’s members,

just like many other Baby Boomers, were approaching retirement differently to previous generations.

“We’re living, working and remaining generally more active and involved than previous generations could ever have imagined, and The Dream Project is all about challenging the traditional retirement stereotypes to engage our members, inspire them to live their dreams and educate them on how they can do this,” said Ms Whatley.

The Dream Project contains interactive educational content including quizzes to help people uncover their dream retirement activities, calculators showing how long people spend on everyday tasks and the cost of living longer, and infographics about how retirement and life expectancy have

SUPER NEWS

SUNSUPER ‘R WORD’ VIDEO PROVES A HIT WITH MEMBERS

The Dream Project home page is clear and easy to navigate

changed over the last 100+ years.

“We will continue to update and refresh the content on the site every couple of weeks and will use it as a tool to educate and engage differently with our members around key industry issues in a timely way,” Ms Whatley said.

MOTHER’S DAY CLASSIC PASSES $25 MILLION TO RESEARCH More than 130,000 Australians came out in force in a Mother’s Day sea of pink, for the Women in Super Mother’s Day Classic breast cancer research walk and run held around the nation in May. For the past 18 years, growing numbers have bypassed the slippers and sleep-in, helping Mother’s Day Classic raise $24.3 million for breast cancer research. After this year’s efforts, this will top the $25 million mark.

Mother’s Day Classic chair and co-founder Louise Davidson said this year Mother’s Day Classic achieved record growth in regional areas, with events held in 104 locations across Australia including all capital cities, major metropolitan areas and 92 regional locations.

“Mother’s Day Classic is a celebration of the lives of those who have breast cancer and others we’ve lost to the disease. It’s emotional and uplifting at the same time. There is solidarity in seeing so many people come together to remember or support someone with breast cancer,” Ms Davidson said.

In addition to the widespread support from super funds across the industry, individual super fund CEOs also get involved through the Boardroom Challenge.

David Atkin (Cbus), Anthony Rodwell-Ball (NGS Super), Julie Lander (CareSuper), Louise Davidson

Ready, set, go! Plenty of pink at the Perth event

(ACSI), Kevin O’Sullivan (UniSuper) and Leanne Turner (MTAA) all jumped on board raising almost $50,000 in total.

Since the event began in 1998, Mother’s Day Classic has become the largest funder of National Breast Cancer Foundation research. Five year survival rates for breast cancer now stand at 89%, significantly increased from 72% in the early 1990s. Despite these advances, on average 7 Australian women die each day from breast cancer. With research, more can be done.

SUPERTALK – July 2015

07

AT FIDELITY, WE SEE THINGS OTHERS DON’T.

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See more at fidelity.com.au

*At 31 March 2015.

This document was issued by FIL Responsible Entity (Australia) Limited ABN 33 148 059 009 AFSL No. 409340 (“Fidelity Australia”). Fidelity Australia is a member of the FIL Limited group of companies commonly known as Fidelity Worldwide Investment. You should consider whether this product is appropriate for you. You should consider the Product Disclosure Statements (“PDS”) for Fidelity Australia products before making a decision about whether to acquire or hold the product. The relevant PDS can be obtained by contacting Fidelity Australia on 1800 119 270 or by downloading it from our website at www.fidelity.com.au. This document may not be reproduced or transmitted without the prior written permission of Fidelity Australia. The issuer of Fidelity’s managed investment schemes is FIL Responsible Entity (Australia) Limited ABN 33 148 059 009. Fidelity, Fidelity Worldwide Investment, and FIL10067_AIST the Fidelity Worldwide Investment logo and F symbol are trademarks of FIL Limited. © 2015 FIL Responsible Entity (Australia) Limited.

AUSCOAL Super, the industry fund for Australia’s mining community, has changed its name to Mine Wealth + Wellbeing as of 1 July 2015.

CEO Bruce Watson says the fund’s new brand and name has been chosen to offer members increased value throughout life, not just when they are thinking about retirement.

“Our mission has been to help Australia’s mining community retire with dignity for over 70 years.

Innately knowing our members and serving their retirement needs is our calling and our specialty,” Mr Watson said. “Extensive market

research has showed that many members and their families are looking for more than super.’’

Mr Watson said that for Mine Wealth + Wellbeing members ‘more than super’ translates into information, guidance and advice at various life stages other than retirement.

“After thorough segmentation and analysis we’re developing new wealth and wellbeing solutions to suit our members, no matter who they are or what their life stage – from their first job, to their first home, from planning their retirement to navigating aged care,” he said.

SUPER NEWS

AUSCOAL SUPER BECOMES MINE WEALTH + WELLBEING

The new Mine Wealth + Wellbeing logo

Other changes at the fund include a new logo and refreshed customer communications.

DIRECTOR MISCONDUCT ON ACSI’S AGENDA Bringing together speakers from across the globe, ACSI’s recent annual conference – held this year in Sydney – explored the major ESG issues facing long-term investors including the ongoing challenge of director diversity in Australian boardrooms, the physical and mental health of employees in the workplace, and the urgency of meaningful global action on climate change.

Governance and misconduct in the financial services sector were the key themes of ACSI’s directors’ panel which brought together some of the most prominent directors in the country - ANZ Chair David Gonski, AMP chair Simon McKeon, Macquarie chair Kevin McCann and CBA director Jane Hemstritch. The panel was challenged by questions regarding corporate culture, the recent spate financial planning scandals and how banks adapt their lending practices to deal with the issue of climate change.

Climate change was also a key topic with Professor Mervyn King, Chairman – International Integrated Reporting Council highlighting the need for funds and companies to improve their financial reporting to include ESG factors as part of a global shift towards ‘long-term capitalism.’ Christiana Figueres, Executive Secretary of the UN Framework Convention on Climate Change, gave the conference a global perspective on climate change highlighting the actions that governments are taking internationally and the need for investors to develop investment policy in a context of ‘a new reality.’

Fund manager Simon Mawhinney and corporate governance expert Professor Ian Ramsay led the conversation on directors duties where major concerns were expressed regarding proposals from the

Michael Dundon – CEO, VicSuper & Professor Mervyn King – Chairman, International Integrated Reporting Council

Australian Institute of Company Directors to introduce a new ‘safe- harbour’ defense for company directors.

The representation of women on listed company boards was also a hot topic with CEO of Newton Asset Management, Helena Morrissey sharing her experiences both in funds management and as the founder of the 30 % Club – a global initiative to increase gender representation in the boardrooms and management of major companies.

CareSuper and ACSI have announced Alice Prudhoe, Sustainability officer at Local Government Super as the winner of the inaugural Michael O’Sullivan ESG Rising Star Award. The Award has been established to recognise the great contribution of Michael to ESG and the entire superannuation industry.

SUPERTALK – July 2015

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RETIREMENT FEATURE

Real face of retirement

Peter & Meryl (70+) Age pension top up really helps

Meryl: Retirement has been better than we thought it would be. We’re very happy. I play tennis with some friends twice a week, Peter does

Thai Chi and we do lots of walking.

We live in a retirement village so we have other people around us and it’s been a good move – we’ve been there about 14 years and retired for about 22 years.

Peter: You certainly need a pension plan! The Age Pension is essential for us – we need it. Work paid super and it made a difference because we had some money as well but you need both. We were just under the cap limit so couldn’t get the pension but then it went up and now we get the part pension which really helps.

Meryl: The pension card is really good. We can travel around NSW for about $2.50 a day! Now we’re finding our health is not as

good as it was ten years ago so we’re being more cautious about what we take on.

Peter: Our general living has become more expensive as the cost of living has gone up but from a travel perspective we only travel when we have saved up enough money. You probably do need one million dollars to retire these days – but then we had nowhere near that.

You don’t need 60 or 70 percent of your normal income to live in retirement. You probably need about $35,000 for an adequate retirement – I’d say about $50,000 is good it just depends on your expectations.

The secret to a good retirement is getting along with your spouse!

No time for bludging Modern day retirement has evolved from a time of rest and recreation to a time of social responsibility and personal renewal, writes popular blogger and former journalist, Adele Horin.

L

ife starts at 60. That’s the topic I was asked to address in a recent talk. But I insisted on putting a question mark at the end.

Does it? It’s fashionable to think we’ll be reborn in our sixties into a world of pleasure and leisure.

But really, it’s nonsense. By the

time you reach 60 to a large extent you’ve made your life. Through good and bad luck, hard work and temperament you’ve got the structures in place – or you don’t.

You’ve arrived at your sixth decade single and happily independent, or with a partner you still like. You’ve

got there with money or with debt, with a network of reliable friends, with a home; or you may be none of these things. If through bad luck, bad decisions, or a bad marriage you’ve arrived at 60 lacking secure foundations, it’s tough to build a new life. Ask men who’ve let

SUPERTALK – July 2015

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RETIREMENT

What makes for a good retirement? What do retirees really think about money and superannuation and what sort of lives are they leading? SuperTalk took to the streets to talk to singles and couples about the reality of their retirement. Here’s a snapshot of what we found out.

RETIREMENT

Marg and Don (70+) Comfortable and busy

friendships lapse about finding a network of buddies post-60; ask older women on the Newstart Allowance. “Life starts at 60” can sound pretty glib to the significant minority of older people who’ve fallen on hard times.

Fortunately most of us do have the basics in place. We’ve to a large extent made our life. Phew, we’ve got here. We’re the advantaged ones.

We’ve reached our 60s with options and opportunities. I’m among you, enormously privileged. I had great parents, good state education, good men who loved me. I’ve had a happy career in journalism. I was there in the golden era. So the question for us is how do we live our lives now? For those of us on secure foundations, who’ve bit by bit pieced a good life together, how do we continue to contribute? Retirement need not mark the point where our contribution is no longer expected

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Don: I don’t know in today’s figures but you live very comfortably on about $55,000 to $60,000 as long as you own your own house.

You can do all the things you want to do, obviously not over the top, but you can go to the theatre, go out to dinner every week, pay a golf membership – you live comfortably.

I don’t know what sort of capital you need to generate that income.

Marg: As long as it keeps generating! You don’t expect to get as busy as you do – or choose to.

We are part of a Probus Club so there’s regular outings, such as today, walking around our own city, going to the MCG.

Don: We’ve got seven grandchildren. They’ve got kinder or school and Marg has looked after them a bit. I do a bit of work for a voluntary organisation, I’m a secretary of a board of management for a disability group – it keeps me out of mischief. We don’t get any Age Pension; we are self-funded.

Marg: Health is the biggest issue for the future, making sure you stay in reasonable health to be able to do what is offered while you’re still fit and able to get around. I don’t want to think past that! It could be a gloomy picture!

or necessary. Retirement should not mark the start of the Me decades.

Australians’ view of retirement has changed over the years. In the 1950s, retirement was a time of rest. Men broken by blue-collar jobs they’d started at 15 needed to recover. In the 1970s retirement was a reward: in return for years of labour and taxes society owed you the Age Pension and a few years of leisure before you died.

By the 1990s retirement was seen as a right. It was a time of R&R – rest and recreation – cruises and grey nomading. The super industry cranked up expectations of retirement to include overseas holidays, air conditioning, restaurant meals, wine, and top rate private health insurance.

But just because we’re retired and no longer paying taxes, doesn’t mean society owes us 20 or 25 years of leisure. Just because we’re retired

doesn’t mean we’re tired, as the Boston writer Ellen Goodman has said. Most of us are not physically broken by our desk jobs. A new mindset is needed for these years.

We’re healthier, better educated than past generations of retirees. We don’t think old age starts at 65 as our grandparents did. Here’s a new R&R approach to retirement – it’s about renewal and responsibility.

People in their mid 60’s are happy – possibly the happiest we’ll ever be Retirement is definitely an opportunity for personal renewal.

Freed of the pressure to strive and compete, we can finally tap the nicer person lurking within – the more

relaxed, well-rested, unhurried one. Surveys show people in their mid-60s are happy – possibly the happiest we’ll ever be. In our youth many of us were anxious and selfconscious. As we near the end of our lives, our sense of well-being dips again. But this is the sweet spot. If our retirement’s been voluntary not forced, if we’ve got those foundations in place, this can be a golden time to try new things, to get into shape, to travel, to spend more time doing what we love. Some people do find “encore” careers, and late-life divorcees do find “encore” loves. As a UK survey showed, people at this age can feel more vital than at any time since their thirties.

But it’s also a time to give back, to be responsible citizens. I think many people in their 60s and older have already adopted this new R&R approach to retirement.

They’re giving back or looking for

I lost my husband three years ago and I live by myself which I find very lonely. I still work five hours a week doing alterations – which I’m allowed to do –the Age Pension isn’t enough. We didn’t have superannuation.

I pay for health insurance each month which I don’t want to stop because I don’t want to get stuck on a waiting list. It’s hard with money, you have to watch every cent.

We came to Australia in 1954, my husband had to stop work early in 1992 because he was sick. We thought we’d go back to Italy but we never did. Now I stay here because I have a son who is married with two girls.

It would be lovely to have $1 million to retire – I wish I had a bit more money but I can’t complain. I live day by day. If I had money I’d go back to Italy for a holiday to visit my relatives – my sister, aunty, cousins.

I’ve enjoyed my retirement but I miss my work. I wish I could go every day because it keeps you busy and you can talk. But I can’t, as they will cut my pension. For every $10 they would take $5 away.

Today I’m visiting my friend who is sick in hospital. I love her, she is like a sister to me, not a friend, I met her in 1954 and we’re still friends.

opportunities to give back. Some care for grandchildren or elderly parents, or help out financially.

In total older Australians give $22 billion a year to help their adult children. Many volunteer – though the main age bracket for volunteering is 45-54, not retirees.

Some older people are concerned about the environment, climate change, housing affordability, the legacy being left the next generations. They’re involved in organisations that are trying to make Australia a fairer place. In the US they have a term, “selfish geezers,” to describe well-off older people who get roused only when their own financial interests are threatened.

But that’s far from a representative picture.

So in this new retirement era, this period of personal renewal and social responsibility, some of us find it’s all about balance again. Just as

we tried in midlife to strike the right balance between work and family, so we’re juggling again. This time the balance we seek is between nurturing our relationships, and contributing to the wider society. It’s between being more relaxed, and being bored. It’s between having leisure and having purpose. In 15 years it might be time to grab a Me Decade, a period to reflect on the life we’ve made. But right now we’re busy living it.  adele horin

You can read more from Adele Horin on our favourite online blog Coming of Age. Updated every Monday, you can subscribe for free at www.adelehorin.com.au

SUPERTALK – July 2015

13

RETIREMENT

Mary (80+) Missing work

RETIREMENT

Beverly (60+) Taking it day by day I worked 17 years at the council and then they brought contractors in and we all got laid off so I got a part time job where my son worked, just whenever they needed someone, until I was old enough to get the pension and retire. I retired at 62 and a half – I was happy to retire at that age.

Have you been able to afford to do everything you’ve wanted to do?

Yes I’ve done alright. I reckon it would probably be tougher not having the Age Pension to help.

I heard they might be making people work longer and I don’t

think that’s right. Especially if older people have got physical work and they’ve got to work until they’re in their 70s or something.

What about travel plans do you do any of that?

Not anymore but I used to.

There’s too many strange things going on in other countries now but I did go to Bali quite a few times but I wouldn’t go back, someone might put drugs in my bag and I’d get in trouble. I’ve been everywhere in Australia a long time ago, I’m just happy to do what I want to do when I want.

Yvonne (60+) A nice life but no big plans I haven’t worked for many years so in retirement my life continued as it was before. My husband retired just under 60. I like going on holidays but lately we can’t do too much because my husband has something wrong with his back.

We’re not living a great high life but I like to go to the cinemas and theatres. My husband and I go out to lunch a couple of times a week.

There’s no downside to retirement – it’s good! I just bought a ticket to Strictly Ballroom. He doesn’t want to come and that doesn’t bother

me. If he doesn’t come it means I can go to two different shows!

Don’t waste all your money while you’re working because obviously when you get to retirement age you’ll end up short.

My husband had superannuation but I didn’t – we get a part pension for both of us. It’s good – if we didn’t get the part pension we couldn’t get the cheaper scripts and my husband needs a lot of medication.

We never had big plans – we like to have a nice life but we don’t need big plans to do that.

Ena (80+) Don’t retire too late I go to the tennis every year and I really enjoy that. I expected to spend time with my husband but he died at 62 so I’ve been on my own.

I retired just after he passed, he worked right up until his departure.

It takes me a long time to do the housework. What would usually be done in two hours takes me two days. I go crazy about the weeds sometimes. I think ‘just a few more weeds.’ I still go around on my knees because I can’t balance!

I’m quite comfortable financially. I haven’t done as much

14 SUPERTALK – July 2015

travel as I would have liked to because of my son’s business and he always says “Let’s go next year mum.”

You need to retire while you still have your health and then make the most of it. It usually turns out that one of you departs when you expected to do all these wonderful things and have all this time.

I still have superannuation now, but it’s petering out. I don’t get the Age Pension but I still have rental income to help. I can’t get any concessions though.

INSURANCE

Why data in insurance matters SuperTalk spoke to Robert Nunez, Head of Industry Funds, CommInsure to find out how the increasing role of data can affect a fund’s insurance offering.

What role does data play in insurance?

Data plays an important role in the manufacturing and management of group insurance.

Data assists to develop a deep understanding of the membership profile of the fund; in reviewing insurance cover levels by membership; and in carrying out an analysis of premium and claims experience. The availability of accurate, complete and timely data assists both the fund and the insurer to support the insurance management framework. Data also provides insights into membership needs and therefore supports product design and a tailored and responsive service model.

What sort of data does a super fund provide to an insurer and what impact does it have?

A superannuation fund will typically provide a comprehensive set of data to an insurer covering its insured membership, insurance cover levels, premium, claims etc.

The provision of accurate and complete data impacts across a number of areas including pricing, underwriting and claims management. Good data supports the design of sustainable products, accurate pricing, the establishment and validation of insurance cover and, importantly, the provision of an efficient claims management service to members.

Increasingly, funds and insurers are collaborating around data management, sharing insights and working on sustainable products and service design to meet evolving membership needs. In addition, good clean data assists the insurer to provide regular management reporting to the fund covering the performance trends of the group insurance offering.

How does data affect the tender process?

Data affects the tender process in a number of ways from the formulation of pricing, product, claims management

Robert Nunez, Head of Industry Funds, CommInsure

to management reporting. With respect to pricing, essentially the more accurate, comprehensive and timely the data the better the pricing process and outcomes.

This is because in the absence of data insurers and reinsurers are required to make assumptions, usually conservative, around the membership and claims experience profile of the fund. Data removes the need for conservative assumptions and furthermore helps to provide the necessary insights to better price the risk. In addition, better data enables funds and insurers to collaborate on product design to achieve more equitable outcomes for members.  sg

SAVE THE DATE

INSURANCE Wednesday 7 October, 2015 > Swissotel, Sydney

SUPERTALK – July 2015

15

US STUDY TOUR

Data deep end – key learnings for Australian funds Representatives from 11 super funds gathered in San Francisco last month to start a 10 day data and technology tour that took them to Sacramento, San Jose, Boston and New York. The aim was to explore the technology trends that are shaping the US financial services sector including member experience, security, hardware, logistics, cloud, mobile, the future of digital advice and more. Here’s a snapshot of AIST’s marketing and partnerships manager, Theresa Hoogland’s key takeouts:

1

SPEED MATTERS

First up was Hewlett Packard where the discussion centred on “digital and speed.”

According to Brian Coapstick, Director of Mobile Innovation for HP, being a truly digital enterprise means being able to react and respond quickly to changing business models.

“Modern day attention spans are so short, that if you can’t facilitate a transaction for your members in around 60 seconds, you’ll lose them,” he said.

According to Brian, the key question any pension fund needs to ask before launching a mobileled strategy is: “How will I redefine this process or transaction to make it a more simplistic process via mobile?”

Mobile will expose all your back end sins.

16 SUPERTALK – July 2015

2

IT OVERHAUL SET TO DELIVER

In addition to visiting some of the leading technology providers in the US, the tour provided delegates with valuable insight into how two leading US pension funds are approaching data and call centre management.

At CalSTRS, (the Californian pension fund for teachers), delegates learnt of the fund’s two

year journey to a new technology platform for their pension system management. With a 15 year old IT system struggling to meet the fund’s needs, a multi-million dollar strategic planning program was undertaken in 2009.

Reflecting on the fund’s IT transformation, CalSTRS’ Chris Caietti – the fund’s Business Renew Executive Officer – said the planning stage was critical to the success of the project.

When selecting their IT service

For David Haynes, AIST’s executive manager policy and research and resident technology geek, the trip to the US was a wake-up call.

Remember the Pony Express? It linked the American West, town by town, horse by horse. Well, the Pony Express went bust on 26 October 1861, just two days after the telegraph opened up U.S. communications from coast to coast.

Brett King, the Australian founder and New York-based CEO of the mobile banking start up, Moven, told us this to make the case that financial services were at the same critical point in their history, and that companies needed to work out what their ‘telegraph’ would be.

Travelling across the US, we saw how major financial institutions are taking this message really seriously. We visited ‘ideation’ rooms in some of America’s largest financial institutions, where the world’s best and brightest are being put to work to solve questions that haven’t been asked yet. In one room boffins were building models and

provider, the fund put an emphasis on getting it right for the long term. “It’s like selecting a partner to marry, you are going to have to live with them for the foreseeable future. Can you put up with them?

Will they be with you through the tough times?” said Caietti.

IT strategy is now a core component of the overall strategic direction and governance overseen by the board at CalSTRS. And as the ‘go’ button is pressed later this year, the fund looks forward to the future benefits of the delivery of

David Haynes, AIST (far right) and Cal Todd, HESTA (middle) are put under the grill on the podcast, Breaking Banks, hosted by founder and CEO of Moven, Brett King.

devices – with no specific design brief – with a quote from Carl Jung prominently displayed: “Often the hands will solve a mystery that the intellect has struggled with in vain.”

We saw the impact of disruptive technology as a reality, as a clear and present threat to the existing ways of doing business, not as some hypothetical that we’ll have to deal with some day.

Companies are responding to this by making major investments in people, technologies and agile structures that recognise the increased importance of data, technology and cyber security. It was a wake up call for me – and I wasn’t the only one.

the system including new internal controls to aid with regulatory reporting, increased member self-service capability, and a highly sophisticated, and yet untapped, data analytic capability.

If you don’t plan right it doesn’t matter how shiny the box is, it will be a disaster.

On the plane on the way home, I saw the Joaquin Pheonix’s movie ‘Her’; a man falls in love with his new operating system with artificial intelligence (A.I). It reminded me that we’ve got to be getting ready not just for today’s challenges and

We saw disruptive technology as a reality opportunities but for those just around the corner. And Brett King told us A.I is one of these.

For delegates on the trip, there were many learnings that can now be put to work.

3

CUSTOMERS & THE CYCLE OF INNOVATION

Next was PegaSystems – a company that provides a CRM platform used by global financial services organisations, including ME. The message here was that creating silos of digital experience is a recipe for failure. Customers want a seamless digital experience.

SUPERTALK – July 2015

17

US STUDY TOUR

A clear and present threat

US STUDY TOUR

Robert Tas, CMO, PegaSystems said in his experience pension funds needed to rethink their technology and engagement strategy to focus on customer and channel, not product.

“You can no longer build your digital app that shows member account balance, for example, on its own, it has to work together in a seamless omni-channel experience, which is a big shift in thinking for funds today,” he said.

According to Tas, there is now a 24 – 36 month cycle of innovation, not driven by technology, but driven by customers and their demands.

“The days of purchasing a system that works for 10 – 15 years is gone. The biggest challenge is not the ideas, it’s the infrastructure, organisational structure and legacy systems that impede this,” he said.

4

DATA AND THE JOY OF SPENDING

A similar message about customers driving change was delivered at SapientNitro, a full service digital agency which manages the digital strategy for US financial services organisations such as Citizen Bank, Fidelity, Bank of America, Citi and mobile banking start-up Moven.

The Sapient team of selfproclaimed ‘financial innovation geeks’ said ongoing and constant change “would require data to understand members and deliver solutions that people may not even know they need just yet”.

So how do we focus on the future when the technology doesn’t yet exist? The team at Sapient help their clients develop what they call ‘rapid prototyping videos’ that can demonstrate a client’s ideas of their vision of the technology and customer experience of the future. Clients need to be able to sell ideas visually – especially when the technology they are pitching for is visual, tactile and may not actually exist.

18 SUPERTALK – July 2015

Sapient’s advice to super funds in Australia is to use digital to focus on the positive. This might mean helping members establish goals that are not too lofty and enabling them to think positively about their future by bringing joy back into spending money.

5

LOYALTY PROGRAM PROVIDES INSIGHTS While a long way from Wall Street or the Boston financial hub, there was much to learn about using data to engage with members from our visit to the headquarters of US baseball team, the Boston Red Sox. With an ageing membership and falling attendance at games, the Red Sox faced a myriad of challenges to engage and retain members.

The company decided to launch a loyalty program that rewards members for purchases of tickets, food and beverage purchases and merchandise purchases.

This program not only engaged members, but also delivered a whole new slew of data (beyond just attendance at games) that the Red Sox are now using to deliver personalised connections.

6

CALL CENTRE JOY

Joy was a focus at Fidelity’s Merrimack Call Centre where we learnt of the company’s aim to build a ‘destination location’ for employees, creating a work environment they want to be in every day. Staff turnover was down to just 5 percent in 2014, with some phone staff having been employed for over 10 years.

The company’s ‘next generation call centre’ is currently rolling out a new IT platform that will include voice bio-metrics for member authentication, skills-based routing

and the capacity for call centre staff to work from home – part of Fidelity’s plan to attract millennials.

The group’s tour at Fidelity also included a visit to the Fidelity Centre for Applied Technology (FCAT). This centre – which takes up a full floor of Fidelity’s head office in the heart of Boston – aims to help clients to imagine the possibilities of new ideas and emerging technologies with an active team of in-house behavioural economists, analysts, developers and entrepreneurs.

7

PERSONALISING THE MESSAGE

A significant focus for TIAA-CREF – one of America’s largest pension funds with over US$860 billion under management – has been the digitisation of the member ‘on boarding experience’. By slashing traditional paper-based induction packs right down, they are driving new members to the online experience.

A custom microsite has been developed for employers which contains interactive experiences and tailored branding to each employer. The site uses behavioural economic thinking and automation to provide investment specific content based on needs and guides participants through difficult decision making.

Once enrolled within the fund, members are then delivered a more detailed welcome email that confirms their portfolio choices, and personalised messages that encourage key behaviours necessary to continue their engagement with their fund.

Since the transition in 2010, online enrolment has doubled, with that growth trend expected throughout 2015, and production of the slim guide brochure has decreased by 50%.

US STUDY TOUR Delegates at the IBM office in New York

8

SETTING A HIGH BAR IN DIGITAL EXPERIENCE

At J.P. Morgan in New York, the bank’s retail arm – Chase Bank (JPMC) – is now spending more than 5 per cent of its marketing budget on digital, with over 35 million customers using digital channels. About half of these are using mobile, with around 25 percent not going back to the desktop web portal.

Adam Carson, JPMC’s Senior Coverage Lead, Global Technology Strategy and Partnerships, said “the key aim was to deliver a simple and personalised banking experience.” “Our customers’ digital experience needs to meet the high bar set by the likes of Google, Amazon and Facebook.”

And while Carson acknowledges the work his predecessors have done to date in developing the bank’s online presence, he also notes that “the teams that got us here today, aren’t the teams that will take us forward in the future.”

As a self-proclaimed ‘video

first’ company, J.P. Morgan has also invested in internal infrastructure to allow customers, clients and staff to seamlessly interact over video from around the globe. This also allows senior executives to record key-note presentations and send on to staff in different time zones to review on demand.

The teams that got us here today, aren’t the teams that will take us forward in the future.

TECHNO TAKE-OUTS `` ``

``

While Australia isn’t far behind – the US is more dynamic in using technology to its full potential, particularly when using video to deliver advice.

When thinking about your IT architecture, think in modules, you don’t need to deliver everything all at once. Find the solution that will meet your specific needs.

When building systems, focus on putting in the core applications that will manage 90% of your needs, then deal with the exceptions.

`` `` ``

Think about security as safety for your members, not just a process you have to do to be compliant.

Ask your vendors what their vision is for their product in the future. You are buying something today, for tomorrow.

Legacy systems should not be an excuse for delaying IT evolution. This is a challenge that is being faced by organisations throughout the US and requires careful consideration, but isn’t the roadblock it is perceived to be.

SUPERTALK – July 2015

19

20 SUPERTALK – July 2015

DATA

Data is the new battleground SuperTalk spoke to ME CEO, Jamie McPhee, about how data is changing the way the bank is working with industry super funds and their members.

When it comes to the highly competitive world of banking and superannuation, data is the new battleground. For a bank like ME, it could also be the key to helping super funds better engage with their own members.

In line with a growing number of Australian financial institutions, ME is using computing power – paired with data and communication – to make new and compelling connections with its customers.

ME CEO, Jamie McPhee, said ME’s recent $90 million technology upgrade meant the bank was now in a position to analyse and share data insights with its super fund partners.

“Data is a very powerful tool in the world of cross-sell,” says McPhee. “Trigger points like age milestones, changes in pay and home loan status can create previously untapped opportunities” he said.

Mr McPhee said ME could also be a source of data and data analysis for industry super funds, to help them win and retain customers.

“To do that we’re building our customer base by rolling out a new range of products and services that appeal to members of the industry super funds with a focus on joint initiatives enabling us to directly engage with their members,” he said.

The recent launch of the bank’s low-rate credit card, ‘frank’, epitomises this approach.

McPhee said ME had designed ‘frank’ – the foundation for the bank’s co-branding plans with

ME CEO, Jamie McPhee

industry funds – to have one superlow rate to help customers reduce and avoid debt.

Other recently introduced ME products include a new competitively priced Basic Home Loan, which offers exclusive discounts to members of industry funds and unions via the bank’s member benefits program.

The bank has also refreshed its mobile banking app, creating a more intuitive, simplified experience for customers banking on-the-go.

Future plans will include displaying members’ super balances alongside their bank balances so their retirement savings and super fund stay top of mind.

Data is a very powerful tool in the world of cross-sell

SUPERTALK – July 2015

21

NEIL CASSIDY

Former Tasplan CEO Neil Cassidy shares departing words SuperTalk spoke to retiring Tasplan CEO Neil Cassidy to find out what it means to reach “dinosaur status”, how he saw the fund evolve, and what his plans are for the future.

In March this year, Neil Cassidy stood in front of a room full of well-wishers to say his farewells and recount some famous Tasplan stories. Neil joined the fund in 1987 and – apart from four years in another role – the affable former Victorian has lived and breathed superannuation ever since.

From a ‘rocky launch’ in 1987, Tasplan has morphed into a fund with over 17,000 employers and 100,000 members, and is now preparing to merge with Quadrant in November this year. As the selfproclaimed “dinosaur” of Tasplan – Neil has played a key role in the fund’s steady growth and success.

For Neil, it was his previous work with unions following his return from Sydney to Melbourne in 1983 that helped him appreciate the ethos behind industry super funds of putting members’ interests before profit.

“Back in those days superannuation was not very topical and very much limited as corporate companies including AMP, CML and National Mutual had their own products – they were expensive, charging fees out of the contributions people were making and at the end of the day we (the super industry) had a duty to ensure that industry funds emerged to be a cheaper option for members,” he recalls.

22 SUPERTALK – July 2015

Former Tasplan CEO Neil Cassidy says the future of Tasplan is bright

In 1987 there was a need for a multi-industry fund that was to be based in Tasmania and National Mutual offered Neil the opportunity to build Tasplan. Neil knew that the key to making Tasplan a success would be building relationships with local employers and understanding local businesses.

This would involve moving his wife Lynne and their two young sons to Tasmania – uprooting the family after previous moves during his earlier career – an idea that Lynne was not keen on.

“I had actually accepted a three year appointment which caused me

some grief as it could have all gone pear shaped –Lynne had finally agreed to a two year appointment and I didn’t disclose that I’d locked in three as I knew how much she would love Hobart and Tasmania given that we both grew up in Edenhope, a small Victorian town,” he said with a cheeky grin.

One big fund allows us to stave off the industry funds on the mainland.

NEIL PROFILE CASSIDY Neil says that Tasmania needs a fund that can understand locals

Tasplan began operations on 1 May 1987, with the official launch on May 6. The launch itself was well anticipated and Tasplan had received good media coverage with the board having invited every employer in sight. Though it didn’t quite work out as planned.

“The Minister turned up forty minutes late, only a handful of employers turned up, and the map of Tasmania that was printed on the brochures was missing King Island and Flinders Island – it wasn’t a great start,” he laughs.

In 1989, Bob Lynch and Neil Cassidy approached National Mutual to request their assistance to help grow Tasplan’s membership. Within 12 months, participating employers grew from 67 to 1097, resulting in over 10,000 new members.

Keeping with his original plan to build relationships with employers, Mr Cassidy turned his attention to getting Tasplan included in the State Awards. It was a success – Tasplan was nominated in 98 per cent of the Awards at the time.

“It was a very important strategy, extremely successful, and it gave us the platform to visit the employers and enrol members into Tasplan, with the support of our two sponsoring bodies,” said Neil.

In 2003, the NSW Bus and Coach Super Scheme and Transecure would both merge into Tasplan, delivering around 18,000 new members and $130 million in assets.

However, Neil has never believed the game is just about scale.

According to Neil, smaller funds are just as important as big funds and all funds – no matter what size – have a duty to look after the reputation of the industry by doing the right thing.

“If one big fund goes down, the industry’s reputation is tarnished; it’s the same with small funds too.

We need to be watching not only our own business, but all the other funds,” he said.

Throughout the mergers, Tasplan has been a unique position that has enabled it to maintain the essence of its brand.

“Everyone knows Tasplan is Tasmanian, so it’s nice to keep Tasmania in the name,” says Neil.

“It’s been a good journey – we’ve taken some calculated risks to get to where we are now.”

The merger is as important for Tasplan as it will be for the Tasmanian people, Neil’s goal has long been to create one big Tasmanian fund, combining the three small Tasmanian funds which were potentially vulnerable to fall into the hands of the ‘mainland.’

“After opening more offices in Tasmania, I’d like to see Tasplan offices in New South Wales and potentially even Victoria,” said Neil. “Without a local super fund Tasmania would feel the effect of job losses, local spend and inability to seek local investments.”

As a CEO, Neil has a reputation for calling a spade a spade and having an open door policy – he believes that you need people to be honest with you so you can “sort out any problems before they become big.” Like many retiring CEOs and fund executives, he is keen to serve on a board and – with a keen interest in mental health – has suggested he could help with a Tasmanian arm of SuperFriend.

I left Tasmania for three years, I was a lost soul.

As for life after Tasplan, Neil has committed to six months off and has a new role as ‘grandpa’ to his first grandson Samuel. Other plans include more travel with wife Lynne, perhaps a few weeks back in country Victoria, is definitely on the cards. It is clear, however, that moving away from Tasmania isn’t.

“I left Tasmania for three years, I was a lost soul. I hope that by the time Sam enters the workforce the expanded version of Tasplan is still operating strong,” said Mr Cassidy “I have no regrets as I have been fortunate to work with wonderful people, have a very supportive family, and have had the opportunity to work in a fantastic environment that changes people’s lives from birth to retirement through industry super funds.  sg

SUPERTALK – July 2015

23

CMSF 2015

CMSF 2015

Lights, camera, action! CMSF opens with spectacular colour

The conference bags added some Queensland colour

Kerrie Howard, Lesley-Ann Morgan and Clare Offwood (all Schroders) had some photo booth fun

It wouldn’t be CMSF without Ellen Fanning – pictured here with Lesley-Ann Morgan (Shroders) and Anne Richards (Aberdeen)

The new ME Learning Lab gave delegates access to speakers and kept the debate going

Paul Ryan (TWUSUPER), Geoffrey Pidgeon (HSBC), Duncan Hodnett (Eaton Vance) at the ready for the conference dinner

24 SUPERTALK – July 2015

CMSF 2015 Trustee of the Year Maree O’Halloran (HESTA) showed off her award to Bob Lipscombe (First State Super) and Rod Harty

Karen Volpato (AIST), Elly Grace (NAB), and Elizabeth Maclean (REST) catch up between sessions

Saia Havili and the Hon. Siaosi Sovaleni (Deputy Prime Minister of Tonga) from Retirement Fund Board made a special trip to take part in CMSF

Zoe Heath (First State Super), Luke Fraser (QSuper), and Megan Pham (AMIST Super) provided a fresh take on where super needs to head

Marianne Harvey and Cristian Staal (both Clemenger BBDO) invited delegates to daydream again in their Ted-Talk style presentation

The coffee Kombi had delegates delighted

‘Get the board on board with brand’ said Bob Every AO Chair of Wesfarmers

The conference dinner auction raised important funds for SuperLife

Cheryl Heath, Colleen Hogan-Manning, Michelle Kerlin, Rebecca Metuisela, and Shirley Sutherland from HESTA caught up in the Expo Hall

Renae McGowan (Mercer) and Cate Wood (CARE & WIS) asked delegates to consider new approaches to attracting and engaging female talent

SUPERTALK – July 2015

25

INSURANCE

Insurance claim process an opportunity to focus on members’ best interests As advertising around “no win no fee” legal services grows, super funds are increasingly hearing from lawyers before members in regards to Total & Permanent Disability (TPD) or death claims. SuperTalk spoke to Cbus about how they deal with the situation Scot Quigley, General Manager, Insurance and Complaints Services at Cbus said that Cbus – like many funds – had experienced an increase in the level of legal involvement in insurance claims, particularly TPD. “Whilst law firms can play a role in assisting members with claims, the majority of Cbus TPD claims are paid, and it’s arguable that the outcome would be the same regardless of legal involvement,” said Mr Quigley.

With at least 20 per cent of the population between the ages of 21 and 64 likely to suffer some unfortunate event in their lives that will cut their working years short, insurance is considered an important element of the superannuation system. Prior to the compulsory super system, many workers were denied access to lowcost insurance products.

As pointed out by Mr Quigley, claims that involve legal representation don’t tend to resolve any quicker than members who claim without it. However TPD may seem like a complicated process, there may be uncertainty over entitlements or evidence required, or in many cases members have already established a relationship with their lawyer when lodging an external claim prior to their super fund TPD claim, such as worker’s compensation.

Cbus believes it is the role of

26 SUPERTALK – July 2015

A large number of Australians don’t have their insurance sorted

a super fund to assist members with submitting their claim, including the completion of claim forms, accessing medical evidence as required and also insurer engagement.

“Funds have a responsibility to inform and educate members (and employers and fund stakeholders) who are claiming TPD that they can come directly to the fund for assistance when lodging a claim,” said Mr Quigley, “The service provided by funds needs to be technically proficient and personalised. The fund needs to be dynamic and interact with its members as they require. This includes face to face contact, telephone contact and digital

interaction where desired.”

Acting in the best interests of members, funds can act as a member advocate and provide an assistance program where members are guided and supported through what they will often deem a complicated process.

Mr Quigley said that Cbus views the claim process as an opportunity for the fund to live its values of members’ best interests being at the heart of everything they do.

“If funds are concerned about the rates of legal representation members are seeking and the associated cost to members, the onus is on the funds to promote this type of service for members,” said Mr Quigley.

TRUSTEES OF YEAR

Trustees of the Year highlight value of representative model Bob Henricks (Energy Super) and Maree O’Halloran (HESTA) were announced as joint recipients of the AIST Trustee of the Year award at this years’ Conference of Major Superannuation Funds (CMSF).

Mr Henricks dedicated his award to leading industry figure, the late Mavis Robertson AM whom he spent much time with at the beginning of industry superannuation in Australia.

“I’m a person who goes back to the very start of industry superannuation in Australia... I’m so sad Mavis isn’t here to say ‘good on you Bob’” said Mr Henricks.

While Ms O’Halloran said she was honoured to receive the Award and to have received it jointly with Mr Henricks.

“HESTA is a wonderful super fund and I’m very proud to be part of the industry super movement.

All of the board members at HESTA contribute and care about the members passionately and work to

Tom Garcia (AIST), Bob Henricks (Energy Super), Maree O’Halloran (HESTA) and Ray Macken (Schroders)

ensure the best possible retirement outcomes,” said Ms O’Halloran.

The Trustee of the Year Award, which has been sponsored

by Schroders for the past five

years – recognises the crucial role that representative trustees play in Australia’s $2 trillion superannuation industry.  sg

THE FUTURE IN A SNAPSHOT: Maree O’Halloran, Joint Trustee of the Year 2015 One of the greatest challenges over the next 10 years will be to maintain our strong focus on the need to ensure an adequate income and dignified retirement for all our members, including those on low incomes.

I support the representative trustee governance model with trustee directors having a connection with, and understanding of, the nature of the fund membership as a whole. Even without changes to default status in awards, it seems inevitable that more direct relationships with members and potential members will be required. I think representative trustee directors will have important insights to assist with those relationships to maintain the primary purpose of super into the future.

Bob Henricks, Joint Trustee of the Year 2015 Over the next 10 years there will be many challenges to the industry fund super model by governments which represent other interest groups. Their proposed changes will not be in the interests of the average super fund member.

As trustee directors we must remain vigilant, not become frustrated or try to appease their whims by compromise which will weaken the role of industry fund directors. In order to vigorously defend the strong representation currently received by our fund members, we need to give more support to AIST as our industry voice.

SUPERTALK – July 2015

27

PROFILE

5 MINUTES WITH

Louise Davidson SuperTalk spoke to recently appointed ACSI CEO Louise Davidson about her new role, achievements and finding a dream job.

What is ACSI and why this role for you?

ACSI is the Australian Council of Superannuation Investors.

ACSI has 31 Australian fund members and 6 international members who between them represent more than $1 trillion in assets under management. We help our members to implement their commitment to ensuring that environmental, social and governance (ESG) issues are properly managed by the companies they invest in. We do this by conducting research on ESG issues, by meeting with the companies and by providing advice to members on their voting at company AGMs. Clearly ESG issues matter to you, what do you see as the biggest issue for funds and how can they combat this?

It is hard to choose just one issue, but climate change is

clearly a very significant issue for investors, now and probably for several decades to come. There are no easy answers but certainly all super funds should be considering the ways in which climate change is likely to impact on their portfolios and trying to identify the risks and opportunities they are exposed to.

In 2013 you were named as one of AFR’s 100 Women of Influence, and then named Victoria’s local hero in 2015. What did those achievements mean to you and how did you get there?

Those awards came about largely because of my work on the Mother’s Day Classic. They were both really humbling occasions, and I was particularly struck by all the incredible things people are doing in our community – so many people doing so much, and yet we rarely hear about it. I guess good news doesn’t sell…

ACSI CEO Louise Davidson

As Chair of the Australian PRI Signatory Network, National Chair of MDC Foundation and now CEO of ACSI, how do you get work/life balance?

Hmm. Ask me this question in another 12 months and I will see if I’ve found the answer!

What career advice do you give your daughters?

Firstly, I try not to focus on ‘what they want to do when they leave school’. They are only in their early teens, and I don’t think many people have a clue at that age. But the main things I try to impress on them are to do something you love, and also to be open minded about the possibilities – I don’t think ESG or jobs like mine existed when I was at school, so I tell my girls that their dream job might not have been invented yet!

For Louise and her family attending the Mother’s Day Classic is a tradition

28 SUPERTALK – July 2015

MAVIS ROBERTSON

Mavis Robertson AM legacy to live on A number of superannuation industry initiatives have been announced to honour the legacy of Mavis Robertson AM, who died at age 84 years, in February this year.

An industry pioneer, Mavis was a founding member of the Conference of Major Super Funds (CMSF); Australian Institute of Superannuation Trustees (AIST); Women in Super; the Australian Council of Super Investors (ACSI); and the Mother’s Day Classic.

From next year onwards, AIST’s Conference of Major Superannuation Funds (CMSF) will feature a ‘Mavis Robertson Address’ – a plenary dedicated to challenging the superannuation industry to think about progressive social change, social justice, and to question the status quo.

AIST president Angela Emslie said that when AIST and CMSF were conceived by Mavis, her thinking was about the power of the collective and supporting trustees from the not-for-profit sector to be innovative and drive better

retirement outcomes for members.

“The spirit of what CMSF, AIST and WIS set out to do has also been evident in the many conversations that I have had with delegates about how we as leaders can continue Mavis’ legacy,” said Ms Emslie.

Women in Super (WIS) have paid tribute to Mavis at Mother’s Day Classic events throughout Australia and have also announced the Women in Super’s Victorian Mavis Robertson Scholarship Program that will honour Mavis’ role in supporting and mentoring women in the superannuation industry.

WIS Chair, Cate Wood said the professional development scholarships aimed to help females in the superannuation industry reach their full career potential.

“We hope the scholarship program motivates others in

Mavis Robertson AM

the industry to institute similar initiatives that will combat the gender inequities and unconscious bias preventing women from achieving their full potential at work,” said Ms Wood.  sg

INAUGURAL RECIPIENTS OF WOMEN IN SUPER’S VICTORIAN MAVIS ROBERTSON SCHOLARSHIP PROGRAM HAVE BEEN ANNOUNCED: —— —— —— ——

Amy Eden of Superpartners will now undertake a formal Project Management course.

Melissa Westerhoff of NAB Asset Servicing, now sponsored to gain her RG146 qualifications.

Laura Parr of AustralianSuper will pursue Business Strategy studies at Swinburne University.

Sharyn Cowley of Telstra Super, is attending an influencing skills program.

SUPERTALK – July 2015

29

YOUR QUESTION: ?

Should I consider bond market exposure?

What alternative asset classes can I expand into?

Is now the time to buy Australian equities?

Should I select $US or multi-currency solutions?

How can I fund with certainty?

Is this the time for M&A?

THE ANSWER TO YOUR QUESTION IS J.P. MORGAN. When you need to make the right decision, connecting with people who can provide unique insight and specialist knowledge is vital.

We’ve built our reputation on the expertise and capabilities of our entire Corporate and Investment Bank, which allow us to respond to you with more relevance.

So whether it’s simple or complex, the answer to your question can be found at J.P. Morgan.

To engage with our local experts, visit jpmorgan.com/australia

It was a full house at last month’s inaugural Indigenous Super Summit, with nearly 100 delegates attending the event held in Melbourne. Organised by the Indigenous Superannuation Working Group – a cross industry commitment to effectively establishing and meeting the needs of Aboriginal and Torres Strait Islander people – the Summit was an opportunity to improve outcomes for Aboriginal and Torres Strait Islander superannuation members and their beneficiaries, with particular regard to improving access and engagement with super.

The day began with a panel overview: (from left to right: Glen Brennan (NAB), Lyn Melcer (QSuper), Trevor Pearce (First Nations Foundation) and Peter Daniel (Productivity Commission)

Delegates were encouraged to actively contribute – Helen Brady (NAB Wealth) asking a question

Sharon Morris (WIS), Cathy Binnington (ASIC), Robert Bianchi (Griffith University), Neil Saxton (HESTA) brainstorm potential solutions

Indigenous Superannuation Working Group chair Eva Scheerlinck (AIST) wraps up outlining the next steps for the industry

The workshop gave delegates an opportunity to collaborate

Dr Vinita Godinho (Financial Resilience Australia) shared research and insights into financial capability and wellbeing in Indigenous Australia

John Gibbs, (Department of Human Services (DHS)) shares how the DHS can assist the industry going forward

Photography: Rob Demasi

SUPERTALK – July 2015

31

INDIGENOUS SUPER

Indigenous Super Summit

MEMBER NEWS

Member news INDUSTRY APPOINTMENTS ACSI has appointed Louise Davidson as its new CEO. Ms Davidson was previously the Environmental, Social and Governance Investment Manager at Cbus and is the long-standing Chair of the Mother’s Day Classic fun run for breast cancer research.

Australian Catholic Superannuation & Retirement Fund has appointed John Phokos as an investment manager for private markets.

Previously an investment analyst at NSW Workcover, Mr Phokos has over 20 years experience in financial services.

AustralianSuper has appointed Andrew Baker as head of proposition and product at AustralianSuper.

Previously, Andrew was the Founder and Managing Partner of Tria Investment Partners.

First State Super has appointed Michael Baldwin as head of corporate affairs. Mr Baldwin was previously the CEO of FEAL, prior to being the assistant director at the National Gallery of Australia.

First State Super has appointed Mary Murphy to the newly created position of chief digital officer.

Ms Murphy will be responsible for the digital transformation of the fund as well as brand and corporate affairs strategy.

First State Super has appointed Guy McAliece as chief operating officer. Mr McAliece will be responsible for marketing, insurance, business development, and the fund’s member administration and service centre.

Future Fund has appointed Carolyn Kay and Jane Wilson as members of the Future Fund Board of Guardians.

Ms Kay and Dr Wilson commenced their roles in April and will serve for a period of five years. The new appointments replace Susan

32 SUPERTALK – July 2015

Doyle and John Mulcahy who were founding members of the Board.

HESTA has appointed Gary Humphrys to the board as an employer appointed director. Mr Humphrys replaces Jay Bonnington who has stepped down after four years of service. legalsuper has appointed Edward Smith as chief investment officer.

Mr Smith is based in legalsuper’s Melbourne office.

Local Government Super (LGS) has appointed Craig Peate as its new chair. Mr Peate has replaced previous chair Bruce Miller following the conclusion of his two-year term. Mr Miller continues as a director and has taken up the position of deputy chair.

Local Government Super (LGS) has appointed Katherine O’Regan and Jeff Morris as directors on the board. The new appointments will represent Local Government NSW and will replace existing directors Leo Kelly and Keith Rhoades.

LUCRF Super has appointed Martin Drew as head of investments.

Mr Drew was previously chief investment officer at State Super and consultant for First State Super.

MTAA Super has announced the appointment of member director Rhonda O’Donnell to its board.

Ms O’Donnell has experience in international and local industries including telecommunications, information technology, education, government and utilities. There are now four female directors on MTAA Super’s board of nine – bringing female representation to 44 per cent.

State Super Michael Carapiet has stepped down as member and Chair on the Trustee Board. Mr Carapiet was appointed as Chair by the Government in 2011. A replacement is yet to be announced.

State Super has appointed Charles

Wu as head of asset allocation and risk. Mr Wu was previously an investment manager at Media Super.

Statewide Super CEO John O’Flaherty resigned at the beginning of May after five years in the role. The fund has not yet named a successor to O’Flaherty Sunsuper has announced the appointment of Jenni Mack to the board of directors. Ms Mack is currently Chair of Job Futures and sits on Australian Securities and Investment Commission’s External Advisory Panel. Ms Mack is best known in the industry for her previous role as chair of Australia’s biggest consumer advocacy group Choice and for her effort to create a specialist superannuation consumer group, the Superannuation Consumers’ Centre.

Sunsuper has appointed Brian Parker to the newly created role of chief economist. Mr Parker will be responsible for providing macroeconomic input into the businesses’ investment decisions, as well as communicating the fund’s investment strategy to both its internal and external stakeholders.

AIST has welcomed three new member-facing employees to the team with the appointment of Sally Graham, Mark Sanders and Eve Rook. Ms Graham and Mr Sanders will fill training consultant roles, while Ms Rook has been appointed as engagement coordinator.

Sally Graham, Mark Sanders and Eve Rook have joined the AIST team

AIST’S FLAGSHIP EDUCATION OFFERING

Trustee Director Course Designed in consultation with leading superannuation experts, this program will provide directors with the skills, knowledge and confidence to immediately improve their performance at board level and become more dynamic contributors.

Why the TDC ticks all the boxes:

What recent TDC graduates have to say:

“All directors and all chairs should make sure that even existing directors have a taste of what’s in this course. I will be doing that for my own directors on our board.“

“This course recognises the unique skills and heavy responsibilities required of today’s trustee directors – it should be on every trustee’s radar.”

` David Galbally AM QC – Chair, TWUSUPER

` John Brumby – Graduate GAIST (Adv.) 2014 Chair, MTAA Super

“The course is relevant, very comprehensive and addresses not only investments but also the governance requirements and finance, which is historically an area that has been under-done.”

“The camaraderie and learning I gained from my fellow participants’ expertise and observations was an unexpected bonus.” ` Katherine Sampson – Graduate GAIST 2014 Trustee Director, CareSuper

` David Coogan – Partner, PwC “Trustee directors need to be armed with their own knowledge, not just go through the motions, so courses like this are invaluable to equip them for their role.”

“The final assessment was a great way to round out the course.” ` Phillip Hart – Graduate GAIST 2014 Head of Institutional, Hunter Hall

` Pam McAlister – Partner, Mercer

“Boards are full of people with great technical skills, but they seem to lack the soft skills …the ability to think independently but act collegiately; the ability to probe and question without rancour; and the ability to objectively listen to another’s point of view.

This is where the course excels.”

“This course is just amazing. I would recommend that all trustee directors, at least do Build your expertise as part of performing their role.” ` Cathy Doyle – Graduate GAIST 2013 Executive HR and Business Leader, N.E.D. & Company Secretary, BNP Paribas

` Sandy Grant – Trustee Director, CareSuper “The industry has changed so much, it’s important that we stay contemporary and really take the responsibility and personal accountability to make sure that we do have the professional training required to fulfil our proper duty.” ` Jay Bonnington – Trustee Director, HESTA

“The facilitators are all seasoned experts who give generously of their time and skill ensuring that the learning objectives are fully met. Be prepared to be worked hard and you will be well-rewarded.” ` Keith Harvey – Graduate GAIST 2013 Trustee Director, CareSuper

For more information visit www.aist.asn.au or contact Meegan George on 03 8677 3825 or training@aist.asn.au

Australian Institute of Superannuation Trustees Ground Floor, 215 Spring Street Melbourne VIC 3000 T +61 3 8677 3800 F +61 3 8677 3801 info@aist.asn.au www.aist.asn.au

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