TTS Characteristics

In simple terms, TTS tailors a funds existing investment options to the individual circumstances of MySuper members by using members own Projected Retirement Balance.

TTS is well-designed. It focuses on the retirement outcome purpose of the Super system. It builds upon first generation age only based life-cycle products by customising investment options for MySuper members over the entire accumulation phase of their working lives.

It provides trustees with the capacity to automatically provide higher risk and returns for some members and not others, to manage down sequencing risk for some members approaching retirement while at the same time investing through the retirement phase for those with greater capacity to bear that risk.

TTS is designed to be re-calibrated each year, with members being switched between investment options as necessary to reflect their changing circumstances (e.g. increase in income, voluntary contributions, extended period of leave, etc.).

TTS aligns strongly with the fiduciary responsibilities and obligations of trustees to act in the best interests of their members. It also aligns strongly with the objective of superannuation to provide retirement incomes.

The current 1.0 version of TTS is ready to roll-out and captures most of the readily available upfront benefits from tailoring. Planned improvements will be made mainly to add features that improve efficiency and usability.

Additional versions of TTS (v2.0 and v3.0) are also envisaged.

This may include additional items already covered by the patent, for example.

It is considered that some further customisation by trustees will be desired in future years. For example LRB’s may be based on gender (females on average live longer than males), default insurance cover amounts may be tailored and TTS may be extended beyond the accumulation phase into the retirement phase.