What is an earning rate

An earning rate is the net investment return (after fees and tax) that applies to your account at the end of each financial year. It can be positive or negative. An earning rate is declared by the LGsuper Board of Directors for each investment option and is based on the investment return achieved on the underlying assets for that option for the year.

Growth Smoothed option

An interim earning rate is used when you withdraw money from the fund or switch investment options. The rate is determined at the start of each year based on the level of reserves at that time and the projected investment return for the year. The rate is updated each week using benchmark investment returns up to Friday and is applied from the third business day of the following week. The rate is also updated each month with any adjustment for the actual investment returns achieved for the previous month.

Other investment options

Earning rates are calculated on a daily basis. The rates reflect benchmark investment returns from 2 business days earlier. For example, the rates used on Thursday reflect the benchmark investment returns for the previous Tuesday. The rates may be updated each month with an adjustment for the difference between the benchmark returns allocated for the previous month and the actual investment returns achieved for that month.

During periods of significant market volatility, or other conditions which prevent LGsuper from determining daily and/or weekly benchmark rates, processing of claims and/or switches may be suspended for up to 7 days or longer, as dictated by market conditions.