Reserve Bank of Australia Annual Report – 2003 Financial Statements Note 16 – Superannuation Funds

Two superannuation funds are operated pursuant to the Reserve Bank Act: the Reserve Bank of Australia Officers' Superannuation Fund (OSF) and the Reserve Bank of Australia UK Pension Scheme. A small part of the assets of the OSF is held by the RBA as nominee for the trustees of the OSF; 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 RBA's contributions to the OSF in accordance with the Reserve Bank (Officers' Superannuation) Rules, and to the UK Pension Scheme 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 and valuation fees) incurred by the RBA for superannuation arrangements are also included in Note 2. There were no other related-party transactions between the RBA and the funds during 2002/03.

At 30 June 2003, the OSF had a surplus of assets over accrued benefits of $66 million ($183 million at 30 June 2002). The UK Pension Scheme had a surplus equivalent to $5 million ($5 million at 30 June 2002). During 2002/03, the RBA made superannuation contributions of $2.3 million ($2.3 million in 2001/02).

Details of the Funds as at 30 June are as follows:

Accrued benefits refer to the present value of future benefits payable to current fund members, taking into account assumed future salary increases. Vested benefits are the benefits payable if all current members were to terminate their fund membership at balance date.