Reserve Bank of Australia Annual Report – 2000 Financial Statements Note 15 – Superannuation Funds

Two superannuation funds are operated pursuant to the Reserve Bank Act: the Reserve Bank of Australia Officers' Superannuation Fund (OSF) and the Reserve Bank of Australia UK Pension Scheme. A small part of the assets of the OSF are held by the RBA as nominee for the trustees of the OSF; such assets are not included in these statements. Payment of the funds' current and future benefits is funded by member and Bank contributions and the funds' existing asset bases. The RBA's contributions to the OSF in accordance with the Reserve Bank (Officers' Superannuation) Rules, and to the UK Pension Scheme in accordance with the UK Trust Deed, are included in staff costs in Note 2. Administration and other operational costs (eg salaries, overheads, legal costs and valuation fees) incurred by the RBA for superannuation arrangements are also included in Note 2. There were no other related-party transactions between the RBA and the funds during 1999/2000.

At 30 June 2000, the OSF had a surplus of assets over accrued benefits of $224 million ($185 million at 30 June 1999). The UK Pension Scheme had a surplus equivalent to $5 million ($5 million at 30 June 1999). During 1999/2000, the RBA made superannuation contributions of $3.1 million ($3.0 million in 1998/99).

Details of the Funds as at 30 June 2000 are as follows:

2000 $M 1999 $M
Reserve Bank Officers' Superannuation Fund
Accrued benefits 385 398
Net market value of assets 609 583
Surplus 224 185
Vested benefits 398 396
Reserve Bank of Australia UK Pension Scheme
Accrued benefits 20 19
Net market value of assets 25 24
Surplus 5 5
Vested benefits 20 19
Total Superannuation Funds
Accrued benefits 405 417
Net market value of assets 634 607
Surplus 229 190
Vested benefits 418 415

Accrued benefits refer to the present value of future benefits payable to current fund members, taking into account assumed future salary increases. Vested benefits are the benefits payable if all current members were to terminate their fund membership at balance date.