Positive Performance for your Scheme Continues

After the stellar increases of late last year the sharemarket had a slow start in the 2004 calendar year, but started to bounce back in the months of February and March.

The more aggressive, 'growth' focussed strategies are starting to reflect the upswing in the sharemarkets in Australia and Internationally. The High Growth portfolio produced the best return in the March Quarter with a 3 month performance of 2.60%.

This was followed closely by the Diversified Strategy (also growth focussed) with a return of 2.48% for the March Quarter. The Balanced strategy followed closely returning 2.36%.

Nevertheless, the more defensive Capital Guarded strategy also achieved an impressive return of 1.94% for this quarter, while Cash being the least volatile strategy, returned 0.98%.

Provided the 3rd Quarter returns for the portfolios continue, 2003-4 should significantly outperform the prior year.

Scheme's Performance

Retirement and Defined Benefit Schemes Returns
March	1.49
March Quarter	2.70
Year to Date	10.08

Contribution Rates for 2004-2005

The contribution rates for year commencing 1 July 2004:

Pool B remains unchanged
Div B      1.9 x Member Contribution
Div C      2.5% of Salary
Div D      1.64 x Member Contribution

Giving Members a Fair Go

In December 2003, we launched the Fair Go program to members who were actively contributing to their super and had a balance of $1000 or more.

We know it can be difficult to save money, with all the commitments that people may have, which is why we are trying to negotiate with suppliers to provide members with special rates and discounts wherever possible. We do this by using your Scheme's buying power, and we do it without incurring additional costs to the Scheme.

Currently as a member of the Fair Go program, you have access to the following benefits:

Savings on your home loan - through our ownership of Chifley Financial Services we can offer a Fair Go home loan with zero application fees, zero monthly fees and competitive home loan interest rates.

Savings on your Health Insurance - Through our supplier Manchester Unity you have access to a range of health cover options at very special rates.

Savings from various hotel chains. Including Best Western, Constellation Group, Flag Choice, and Accor. The prices that are advertised are the minimum you will receive throughout the year.*

Savings at Seven Mile beach or Werri Beach Holiday parks - Save 15% at the Kiama Coast Holiday Parks.

Save on rental cars though Avis.

Unfortunately, Wonderland has closed. We are currently working on negotiating with other suppliers as a substitute for Wonderland.

Your Scheme also offers access to Professional Financial Planning for members heading towards retirement. Contact FuturePlus on (02) 8234 6000.

We are currently working on a number of other suppliers to add to the Fair Go program and will keep you posted as these offers are finalised. So check out your Scheme's website:

www.eisuper.com.au

Here's a list of things you can do to help you towards a better retirement If you have some extra money, you may be able to salary sacrifice. Check with your employer or Union to see if you can. Consolidate your super. If you have money in other superannuation accounts you could be paying multiple administration fees. So take a few minutes now to save this money for yourself. All you have to do is transfer your other super into your Scheme.** Contact Member Services on 1300 369 901

* The rates advertised are the minimum discounts you will receive. Some of the Hotel chains have individual hotel owners. We are aware that you may negotiate a better discount at various times throughout the year at the discretion of some of the individual hotel owners.

** This does not constitute personal advice and you should carefully consider your individual objectives and circumstances. You should also make enquiries of your current superannuation fund/s, as you may be liable to pay exit fees or lose an insurance benefit attached to your superannuation.

Retirement & Wealth Creation Seminars

The Scheme regularly holds Retirement and Wealth Creation Seminars.

The Retirement Seminars are targeted at the over 50's and provide information on the following issues:

• Building Wealth
  - Maximising Super Benefits
  - Minimising Tax
  - Investment Options
• Decision Time
  - Income Streams in Retirement
  - Practical Case Studies
• Centrelink
  - Age Pension & Allowances
  - Asset and Income Tests
• Lifestyle
  - Nutrition
  - Exercise and planning for your retirement

The following are the details of the upcoming Retirement Seminars: http://www.eisuper.com.au/seminars/seminarcalendar.asp

Morning tea and a light lunch are provided

The Wealth Creation seminars are targeted at the under 50's and provide information on the following issues:

• Creating an easy personal budget
• How much to save
• Reducing your tax payable
• How to get the most out of your savings
• Other important issues you need to consider

Following are the details of the upcoming Wealth Creation Seminars: http://www.eisuper.com.au/seminars/seminarcalendar.asp

A light dinner is provided. Members can reserve a seat at one of these seminars by calling 1300 369 901.

SLO Seminars

Thank you to all employers who attended the information seminars recently held around NSW. The attendance was excellent and the feedback and suggestions will be very helpful in further improving our service and deciding what solutions we can provide to you in the future.

Congratulations to the following winners. These attendees have won themselves a prize as a result of their questions and suggestions at the seminars.

• Craig Dumesney of Parkes Shire Council - for the excellent suggestions and questions that broadened our thinking.
• Colin Ware of Armidale Dumaresq Council - for asking the most questions!
• Vince La Malfa of Blacktown City Council - who created an automated exit form before we did.
• Bob Ironmonger of Quirindi Shire Council - for suggesting additional areas we can assist Employers.
• Cathy New of Temora Shire Council - for her responses after being put on the spot

Three of the issues most often raised in the seminars are noted below along with the progress to date.

• Exit Issues: Several issues were raised around exits including exit forms being lost, multiple requests for confirmation of information previously sent and the delay in adjusting the billing. Please refer to the "Communication" item in this newsletter for the correct address for exit forms to ensure all forms are captured electronically. A total review of the exit process, as part of the Case Management of exits, is expected to resolve the remaining exit issues.
• Providing new member numbers: This issue has been raised with the Administrator and new member numbers should be provided once a month to Employers. If you have any previously missing numbers, please contact the Employer Services Helpline on 1800 636 441.
• Earlier notification of contribution rate changes: This process is being reviewed to enable timely notification to employers at the point a contribution rate change is approved, rather than waiting until it is processed.

Contribution Returns

• Please use our standard Employer Contribution Return spreadsheet for contributions and new members as this includes all the necessary details we require to process correctly and efficiently. If all the fields are complete we should not need to contact employers for details regarding new members and contributions should not be allocated incorrectly. This spreadsheet can be found under the Employer Section of the website at www.eisuper.com.au or by calling the Employer Helpline on 1800 636 441.
• To assist with correctly matching EFT files with data files when Mellon receive them, please quote your Employer Reporting Centre Code, or where not known, the employer name (shortened if necessary) as a reference on EFT files.

Seminar Survey

In order to ascertain the seminar attendees' level of satisfaction with the seminar topics, we have put together a questionnaire. We would appreciate it if attendees took a few moments to complete the attached questionnaire and return by:

Fax: Att: Monica Malnar
(02) 9273 0033

Or

Post to: Monica Malnar
PO Box N835 Grosvenor Place
Sydney NSW 1220

Your time is greatly appreciated

Are you sending your communications to the right place?

The following is a one-stop reference guide to all the relevant contact numbers and addresses to which employers are to send communications.

Fax
All Employer faxes are to be sent to: 02 9299 9321

Contribution Return Emails

All Contribution Return e-mails are to go to Mellon via the following e-mail addresses:
For Accumulation and Executive Schemes: accumulationscheme@mellon.com.au
For Defined Benefit and Retirement Schemes: Retirementscheme@mellon.com.au

All Other E-mails
employerservices@eisuper.com.au

Telephone
For all Employer inquiries, please call 1800 636 441

Writing
If you are writing to the Scheme, please address the letter as follows:

Energy Industries Superannuation Scheme
PO Box N835 Grosvenor Place,
Sydney NSW 1220

Newcastle Office

The Scheme's commitment is to provide the best possible service we can to Members. A large part of this is ensuring that we are readily accessible to Members who wish to meet with a Member Services Officer, Financial Planner or Account Manager.

In the past two years, the Scheme has opened offices in Orange, Wagga Wagga, Wollongong and Lismore, to complement Sydney. Our members have found these offices very convenient and over 200 members now visit these offices each month, using the opportunity to update their information, seek advice or just find out about specific products.

The Hunter region is home to a large number of our members. As a result, the Scheme has decided to open an office in Newcastle. The office will be situated at 235 Darby St, Cooks Hill and will be operational from 3 May 2004. We look forward to welcoming our members to the office.

Salary and Super

How an employee's salary for superannuation purposes is calculated can be important from a number of aspects. Obviously it represents a cost to the employer's business and overstating it adds to employment on-costs.

On the other hand, understating an employee's salary could lead to non-compliance with the Superannuation Guarantee legislation. Substantial penalties apply for those employers not correctly meeting their superannuation guarantee obligations.

Correct calculation is even more important with defined benefit schemes. As the benefit payable is a multiple of an employee's salary, incorrectly advised salaries can have a substantial impact on the member's final benefit.

Unfortunately, defined benefit schemes need to be fairly rigid in their application of salary, which tends to be at odds with modern day remuneration approaches.

While the Scheme does not want to play 'policeman', from time to time we remind employers of what the rules are, especially when we are noticing what we believe to be widespread interpretation errors creeping in.

For employers, the correct calculation of salary for superannuation purposes is a legal responsibility, not only in terms of Superannuation Guarantee, but also in making sure they comply with the Scheme's Trust Deed. As incorrect interpretations can also lead to employee disputes, we urge employers to take care in this matter, especially in relation to the Defined Benefit Scheme members. Should your payroll employees require assistance, we suggest you contact Employer Services.