Fund Governance
Background
SPEC Super is an Industry Superannuation Fund, which means that the Fund has low fees, pays no commissions and is run only to profit members. SPEC Super (ABN: 45 404 406 059) is governed by a Trustee company, SPEC(QLD) PTY LTD (ABN: 60 010 743 405, AFSL No: 325 122). The Directors who sit on this company and who oversee the operations of the Fund are referred to as the Board of Trustees. The Board, in running the operations of SPEC Super, make all decisions in the best interests of members.
The rules of SPEC Super are set out in the Trust Deed, which addresses:
- who can join and contribute to the Fund;
- the payment of benefits, including insurance (if any);
- the structure and composition of the Trustee Board;
- the investment of Fund assets;
- how member enquiries and complaints will be dealt with;
- admission and termination of employers;
- payment of tax liabilities
Members are able to view a copy of the Trust Deed, upon request.
Board of Trustees
The Board of Trustees of SPEC Super currently constitutes 5 Directors, with two Directors nominated and elected by the industrial union of employees forming the Scheme Member Body (Communications, Electrical and Plumbing Union - ETU), and two Directors nominated by the employer association (ECA). The fifth Director is independent. In this way, the Board of Trustees satisfies ‘equal representation’ requirements, ensuring that the key stakeholders in the Fund, being employees and employers, have an equal say in decision making. The Directors on the Board of Trustees are currently as follows:
| Member representatives | |
|---|---|
| Bob Henricks (Chairperson) | (appointed since August 1987) |
| Dick Williams | (appointed since July 2008 and previously an Alternate Director since August 1999) |
| Employer representatives Richard Cox (Fund Secretary) |
(appointed since October 1995) |
| Geoff Baldwin | (appointed since July 2008) |
| Independent Director Win Hughes |
(appointed since November 1991) |
The Board of Trustees meet at least 4 times per year to consider the key issues affecting the Fund.
Committees
The Board of Trustees has constituted 5 sub-Committees to assist it in its oversight and management of SPEC Super. Each Committee has a Charter setting out its functions and responsibilities, as well as its accountability to the Trustee Board. The details of these Committees, and their composition, are set out below.
Investment Committee
- Composition: All Directors sit on this Committee, which is chaired by Mr Henricks. The Committee meets at least 4 times a year.
- Responsibility: This Committee is responsible for reviewing the investment performance of SPEC Super as a whole, as well as the performance of individual fund managers. The Committee meets and questions individual fund managers from time to time. It also considers advice from its appointed external investment adviser in making recommendations to the Trustee Board as to which investments to acquire or redeem, investment of cashflow and in the setting of crediting rates for each investment option.
Audit and Compliance Committee
- Composition: Messrs Hughes, Henricks and Baldwin sit on this Committee, along with Ms Joy Cooper, an independent member of the Committee, who provides additional accounting and audit expertise. Mr Hughes chairs this Committee. The Committee meets at least 4 times a year.
- Responsibility: This Committee is responsible for overseeing SPEC Super’s compliance with its legislative and compliance obligations, as well as the preparation and audit of the Fund’s annual financial statements. The Committee has ongoing liaison with the Approved Auditor and also considers reports from its external compliance consultant as well as the Fund’s internal auditor.
Claims Committee
- Composition: Messrs Hughes, Henricks, Cox and Williams sit on this Committee. Mr Henricks chairs this Committee. The Committee meets as required.
- Responsibility: This Committee is responsible for considering how to distribute death benefits amongst beneficiaries, as well as considering the appropriateness of Total and Permanent Disablement and Income Protection claims that are declined by the respective insurer. If the Committee disagrees with an insurer’s decision to decline a claim, representations are made to the insurer requesting reconsideration of the case.
Marketing Committee
- Composition: Messrs Cox, Henricks, Williams and Baldwin sit on this Committee, Mr Cox chairs this Committee. The Committee will meet at least 4 times a year.
- Responsibility: This Committee is new and will commence meeting in early 2009 after the Committee Charter has been finalised. It will be responsible for considering the marketing of SPEC Super to existing and prospective members. This Committee will review all disclosure material, as well as the Fund website and promotional campaigns.
Strategic Review Committee
- Composition: All Directors sit on this Committee, which is chaired by Mr Henricks. The Committee meets at least once a year.
- Responsibility: This Committee is responsible for reviewing the Strategic Direction of the Fund, including consideration of enhancements to the benefit design (ie. improved insurance or member investment choice offering for members).
Training of Directors
Due to the complexity of the legislation governing the superannuation industry, the Directors undertake an ongoing training program to ensure that they remain familiar with the latest regulations and industry developments. Directors are required to undertake a minimum amount of training each year, with part of the training requiring formal assessment.
Regulation of SPEC Super
SPEC Super is regulated by the two major Federal Government institutions responsible for overseeing the financial services industry, the Australian Prudential Regulation Authority (APRA), and the Australian Securities and Investments Commission (ASIC).
The Trustee company holds a Registrable Superannuation Entity (RSE) Licence with APRA and an Australian Financial Services Licence with ASIC. SPEC Super itself is a regulated superannuation fund, and is classified as an RSE by APRA.
Risk Management
As required by APRA, the Trustee Board has in place a Risk Management Strategy (RMS) and a Risk Management Plan (RMP). The RMS outlines the risks and controls in place for the Trustee and the RMP addresses the risks and controls in place for the Fund. These documents are periodically reviewed, in conjunction with the external compliance consultant. Members may request a copy of the RMP.
Conflict of Interest
Each Director is required to disclose any actual or potential conflicts of interest (COI) that they may have.