Reserve Bank of Australia Annual Report – 1993 Financial Statements Related Party and Other Disclosures

Note 14 Related Party and Other Disclosures

Directors The Remuneration Tribunal determines the remuneration appropriate to the Bank's non-executive Board members. In 1992/93, payments totalled $150,411 ($136,997 in 1991/92). In addition, $54,534 (last year $40,908) was paid for the services of members of the Board of Note Printing Australia who are not employees of the Bank.

Payments made by the Bank to a prescribed superannuation fund in connection with the retirement of members of the Board totalled $137,812 in 1992/93 ($116,526 in 1991/92) and are included in staff costs in Note 2. They represent payments in respect of executive members of the Board on the same bases as for other employees, and for non-executive members in terms of the Superannuation Guarantee Charge.

The Bank is not empowered to lend to non-executive members of the Board. Loans to the Governor and Deputy Governors are permitted only in terms of section 71 of the Reserve Bank Act; as at 30 June 1993, there are two such loans (aggregating to $426,996 ($136,140 at 30 June 1992)) which have been made for homes in which the officers reside, and are on the same terms and conditions as for other officers of the Bank.

There were no other related party transactions with Board members; there were a number of transac-tions with director-related entities that occurred in the normal course of the Bank's operations on terms no more favourable than similar transactions with other employees or customers.

Superannuation funds Two superannuation funds are operated pursuant to the Reserve Bank Act. The assets of the Reserve Bank Officers' Superannuation Fund (OSF) and the Reserve Bank of Australia UK Pension Fund are held by the Bank as nominee for the respective trustees of the Funds. 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 Bank's contributions to the OSF in accordance with the Reserve Bank (Officers' Superannuation) Rules, and to the UK Pension Fund 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, valuation fees, etc.) incurred by the Bank for superannuation arrangements are also included in Note 2. There were no other related party transac-tions between the Bank and the Funds during 1992/93.