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Financials - Sydney Metropolitan Development Authority
Notes to the Financial Statements for year ending 30 June 2012
(n) Funding Arrangements for Employer Contributions
(a) Surplus/deficit
The following is a summary of the 30 June 2012 financial position of the Fund calculated in accordance with AAS 25
“Financial Reporting by Superannuation Plans”:
SASS SANCS SSS TOTAL
30-Jun-12 30-Jun-12 30-Jun-12 30-Jun-12
$’000 $’000 $’000 $’000
Accrued benefits 86 152 -- 238
Net market value of Fund assets (30) (38) -- (68)
Net (surplus)/deficit 56 114 -- 170
SASS SANCS SSS TOTAL
30-Jun-11 30-Jun-11 30-Jun-11 30-Jun-11
$’000 $’000 $’000 $’000
Accrued benefits 79 136 -- 215
Net market value of Fund assets (24) (35) -- (59)
Net (surplus)/deficit 55 101 -- 156
(b) Contribution recommendations
Recommended contribution rates for the entity are:
2011-12 SASS SANCS SSS
multiple of
member
contributions
% member salary multiple of
member
contributions
1.90 2.50 0.00
2010-11 SASS SANCS SSS
multiple of
member
contributions
(c) Funding method
Contribution rates are set after discussions between the employer, STC and NSW Treasury.
% member salary multiple of
member
contributions
1.90 2.50 0.00
(d) Economic assumptions
The economic assumptions adopted for the 2009 actuarial review of the Fund are:
Weighted-Average Assumptions
Expected rate of return on Fund assets backing current pension liabilities
Expected rate of return on Fund assets backing other liabilities
Expected salary increase rate
Expected rate of CPI increase
8.3% pa
7.3% pa
4.0% pa
2.5% pa
(o) Nature of Asset/Liability
If a surplus exists in the employer’s interest in the Fund, the employer may be able to take advantage of it in the form of a reduction in
the required contribution rate, depending on the advice of the Fund’s actuary.
Where a deficiency exists, the employer is responsible for any difference between the employer’s share of Fund assets and the defined
benefit obligation.
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SYDNEY METROPOLITAN DEVELOPMENT AUTHORITY