2007 Annual report (PDF 8.1 Mb) - University of Melbourne

NOTES TO AND FORMING PART OF THE
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2007
NOTE 36: SUPERANNUATION COMMITMENTS
36.1 University employees are members of a range of superannuation funds, which are divided into the following categories:
(i) Those operative and open to membership:
- UniSuper (comprising the merged SSAU - Superannuation Scheme for Australian Universities and TESS - Tertiary Education
Superannuation Scheme)
(ii) State Government Schemes closed to future membership by University employees:
- State Employees Retirement Benefits Scheme
- State Superannuation Fund
Some University employees receive superannuation benefits through the Superannuation Guarantee Scheme.
36.2 UniSuper Plans
UniSuper is a multi employer superannuation fund operated by UniSuper Limited as the Corporate Trustee and administered by UniSuper
Management Pty Ltd, a wholly owned subsidiary of UniSuper Limited. The operations of UniSuper are regulated by the Superannuation
Industry (Supervision) Act 1993.
(i) UniSuper offers eligible members the choice of two schemes known as the Defined Benefit Division (DBD) (previously referred to
as the Defined Benefit Plan) or Accumulation Super (2) (previously referred to as the Investment Choice Plan). The contribution rate
to the schemes is 21% of member’s salary, of which the member contributes 7% and the University 14%. Members can elect to
reduce the level of member contributions with corresponding reductions in benefits.
(ii)
The University has no investment risk in respect of the Defined Benefit Division scheme. As such, both the Defined Benefit Division
and the Accumulation Super (2) schemes are Defined Contribution Plans for the purposes of AASB119 Employee Benefits.
UniSuper also offers a cash accumulation productivity scheme known as Accumulation Super (1) (previously referred to as the Award
Plus Plan (APP)). University employees have no requirement to contribute to the scheme. The University contributes the equivalent
of 3% of base salary in respect of those employees who were members of the Defined Benefit Division or the Accumulation
Super (2) Plan. Employees who do not qualify for membership of Defined Benefit Division or Accumulation Super (2) will have a
minimum contribution of 9% of their annual salary contributed by the University to Accumulation Super (1) prescribed under the
Superannuation Guarantee Charge Act 1992.
Casual and non-permanent employees, who do not qualify for membership of the Defined Benefit Division or Accumulation
Super (2), are eligible for Accumulation Super (1).
36.3 State Government Schemes
The University has a number of employees who are members of the State Employees Retirement Benefits Scheme and the State
Superannuation Fund administered by the Government Superannuation Office. These schemes are defined benefits schemes and are
closed to future University employees.
At 30 June, the State Superannuation Fund was carrying total liabilities for member benefits greater than the value of the net market value
of the plan’s assets. As a result an unfunded superannuation liability exists and is recognised in the financial statements of the Scheme.
The University’s portion of the unfunded liability comprises of employees who transferred to the University from the former Melbourne
College of Advanced Education, together with those employees of the former subsidiaries Hawthorn Institute of Education Ltd, Victorian
College of Agriculture and Horticulture Ltd and the Victorian College of the Arts.
As at 30 June the unfunded superannuation liability determined by the Victorian Government Superannuation Office amounted to:
2007
$’000
2006
$’000
University of Melbourne 97,111 90,723
Victorian College Of The Arts - 14,733
97,111 105,456
The values as at 30 June 2007 are the values that have been included in the accounts. Funding to meet payments incurred will be
provided to the University of Melbourne by the Australian Government. The cost is shared between the State of Victoria and the
Australian Government.