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Superannuation Funds
Mr Fletcher asked the Assistant Treasurer, in writing, on 7 February 2012:
(1) What balances does UniSuper use to meet its obligations to members in its defined benefit scheme.
(2) Which other industry super funds have a defined benefit scheme, and what balances exist to ensure that each fund meets its associated obligations to members.
Mr Shorten: The answer to the honourable member's question is as follows:
All defined benefit funds, including UniSuper and any defined benefit industry superannuation funds, maintain a pool of assets that is used to meet their defined benefit obligations to members. This pool of assets is formed via the payment of contributions from the employer(s) of the members of the fund. Part 9 of the Superannuation Industry (Supervision) Regulations 1994 requires, at least every three years, for an actuary appointed by the trustee to formally review the financial position of the fund to:
determine whether the size of the pool of assets is currently sufficient to meet the benefit obligations; and
to advise on the level of contributions required to meet the benefit obligations on an ongoing basis. The contribution rates required to be made by the employer(s) can vary over time depending on the actual experience of the fund.
In practice, actuaries also regularly review the financial position of a fund, generally on an annual basis and/âor when a significant event occurs.
There are currently 15 'industry funds' that have defined benefit members. They are referred to as 'hybrid funds' in APRA statistical publications. Hybrid funds are superannuation entities that have a combination of both accumulation and defined benefit members. There are no industry funds that are solely defined benefit.
Please refer to APRA's Superannuation Fund-Level Statistical publications for data on APRA-regulated 'hybrid' industry funds. The publications are available of the APRA's website at: http://www.apra.gov.au/âSuper/âPublications/âPages/âsuperannuation-fund-level-publications.aspx
