Annual Report for 2006/07 - Metro Tasmania

2826. Superannuation And Defined Benefit PlanEmployees have the choice to contribute to the Retirement Benefits Fund (RBF) or their own nominated fund. Employees maycontribute to the funds at various percentages of their total salary cost.The RBF provides both accumulation and defined benefit divisions. Eligibility to enter the defined benefit divisions ceased on 31December 1999.Plan informationThe RBF is a defined benefit fund which pays lump sum and pension benefits to members upon retirement (most of whichare calculated as a multiple of the member’s final average salary). The RBF has Contributory members, Compulsory Preservedmembers and Pensioners.Key assumptionsKey assumptions as at balance dateand for following year expense 30 June 2007 30 June 2006Discount rate:Gross of tax 6.00% 5.80%Net of tax 5.90% 5.70%Salary rate 4.50% 4.50%Expected return on plan assets (net of tax) 7.00% 7.00%Inflation (pensions): 2.50% 2.50%Tax rate for Employer contributions 14.29% (1) 7.21%Tax rate for discount rate 2.25% 2.25%Decrement rates As per the most recent actuarial As per the report “Valuationinvestigation and reportof Liabilities under the RBFas at 30 June 2006”Note 1: This tax rate is based on the estimated balance of Pre-July 1988 Funding Credits balance as at 30 June 2007.The expected return on plan assets (net of tax) has been based on the expected long term returns for each of the major asset classin which the Plan invests.Plan assetsAsset disclosure 30 June 2007 30 June 2006Australian equities 30% 38%Overseas equities 25% 20%Fixed Interest securities 20% 21%Property 25% 21%Notes to the Financial Statements