Australia Post Annual Report 2008–09

Notes to and forming part of the Financial Report for the year ended 30 June 2009
12 Superannuation
(i) Superannuation plan
The corporation is an employer sponsor of the Australia Post Superannuation Scheme (APSS), of which almost all of its employees are members.
The APSS provides employer-financed defined benefits to all employees who are members, and member-financed accumulation benefits to those who
elect. Some of the corporation’s current and past employees are also entitled to benefits under the Superannuation Act 1976, but the corporation has
no contribution obligation in respect of these benefits. A small percentage of Australia Post employees have elected not to be members of the APSS
and are not entitled to benefits under the Superannuation Act 1976. Australia Post pays the Superannuation Guarantee contribution to the nominated
superannuation funds of these employees. The consolidated amounts shown below are materially consistent with the corporation.
(ii) Amount recognised in the income statement
Current service cost
Interest cost on benefit obligation
Expected return on plan assets
Plan expenses
Contributions tax reserve
80
Australia Post Annual Report 2008–09 | Financial and statutory reports
2009
$m
191.8
360.3
(522.3)
11.8
5.3
Consolidated
Defined benefit superannuation expense 46.9 34.7
(iii) Amount recognised in the balance sheet
Present value of benefit obligation (wholly funded)
Fair value of plan assets
Contributions tax reserve
2009
$m
(5,298.0)
5,695.8
70.2
2008
$m
(5,333.3)
6,688.8
239.2
2007
$m
(5,003.4)
6,514.5
266.7
2006
$m
(4,544.9)
5,693.4
202.8
2008
$m
187.8
329.0
(496.8)
11.2
3.5
Consolidated
2005
$m
(4,171.0)
4,922.1
132.5
Net superannuation asset – non-current (1) 468.0 1,594.7 1,777.8 1,351.3 883.6
(1) Australia Post’s entitlement to any surplus in the Fund is limited by the terms of the relevant Trust Deed and applicable superannuation laws. On termination, any money and other assets
remaining in the fund after the payment of benefits and expenses of the fund would ultimately be realised and the proceeds distributed to the employers (including Australia Post) in such
shares as determined by Australia Post. Outside termination, there is scope for Australia Post to request a return of surplus, which may be no more than the amount (as determined by
the fund’s actuary) by which the total fund value exceeds the total accrued benefit value. In addition, Australia Post benefits from the surplus through reduction in future superannuation
expense and contributions.
(iv) Reconciliations
Changes in the present value of the defined benefit obligation is as follows:
Opening defined benefit obligation at 1 July
Interest cost
Current service cost
Benefits paid
Member contributions
Actuarial losses on obligation
2009
$m
5,333.3
360.3
191.8
(271.3)
69.5
(385.6)
2008
$m
5,003.4
329.0
187.8
(290.0)
65.5
37.6
Closing defined benefit obligation at 30 June (1) 5,298.0 5,333.3
Changes in the fair value of the plan assets is as follows:
Opening fair value of plan assets at 1 July
Expected return on plan assets
Contributions by employer
Member contributions
Benefits paid
Actuarial losses
Plan expenses
Contributions tax reserve
6,688.8
522.3
46.9
69.5
(271.3)
(1,343.3)
(11.8)
(5.3)
6,514.5
496.8
34.7
65.5
(290.0)
(118.0)
(11.2)
(3.5)
Fair value of plan assets at 30 June (1) 5,695.8 6,688.8
(1) Included in the obligation and plan assets above is $2,489.5 million (2008: $2,763.5 million) relating to member-financed accumulation benefits.
The group expects to contribute approximately $129.3 million to its defined benefit pension plan in 2009–10.