Reserve Bank of Australia Annual Report – 2001 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 2000/01.

At 30 June 2001, the OSF had a surplus of assets over accrued benefits of $228 million ($224 million at 30 June 2000). The UK Pension Scheme had a surplus equivalent to $5 million ($5 million at 30 June 2000). During 2000/01, the RBA made superannuation contributions of $2.2 million ($3.1 million in 1999/2000).

Details of the Funds as at 30 June 2001 are as follows:

2001 $M 2000 $M
Reserve Bank Officers' Superannuation Fund
Accrued benefits 388 385
Net market value of assets 616 609
Surplus 228 224
Vested benefits 401 398
Reserve Bank of Australia UK Pension Scheme
Accrued benefits 21 20
Net market value of assets 26 25
Surplus 5 5
Vested benefits 20 20
Total Superannuation Funds
Accrued benefits 409 405
Net market value of assets 642 634
Surplus 233 229
Vested benefits 421 418

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.