Annual Report 2014

NOOSA SHIRE COUNCIL

        Notes to the financial statements
        For the six months ending 30 June 2014                                                                   Consolidated             Council
                                                                                                                      2014                 2014

                                                                                                      Note              $                    $
                  The scheme has three elements referred to as:
                  The City Defined Benefits Fund (CDBF) which covers former members of the City
                   Super Defined Benefits Fund
                  The Regional Defined Benefits Fund (Regional DBF) which covers defined benefit
                   fund members working for regional local governments; and
                  The Accumulation Benefits Fund (ABF)

                  The ABF is a defined contribution scheme as defined in AASB 119. Council has no
                   liability to or interest in the ABF other than the payment of the statutory
                   contributions as required by the Local Government Act 2009.

                   Council does not have any employees who are members of the CDBF and, therefore,
                   is not exposed to the obligations, assets or costs associated with this fund.

                   The Regional DBF is a defined benefit plan as defined in AASB119. The Council is
                   not able to account for the Regional DBF as a defined benefit plan in accordance
                   with AASB119 because the scheme is unable to account to the Council for its
                   proportionate share of the defined benefit obligation, plan assets and costs. The
                   funding policy adopted in respect of the Regional DBF is directed at ensuring that
                   the benefits accruing to members and beneficiaries are fully Funded as they fall due.

                   To ensure the ongoing solvency of the Regional DBF, the scheme's trustee can vary
                   the rate of contributions from relevant local government employers subject to advice
                   from the scheme's actuary. As at the reporting date, no changes had been made to
                   prescribed employer contributions which remain at 12% of employee assets and
                   there are no known requirements to change the rate of contributions.

                   Any amount by which the fund is over or under funded would only affect future
                   benefits and contributions to the Regional DBF, and is not an asset or liability of the
                   Council. Accordingly there is no recognition in the financial statements of any over
                   or under funding of the scheme.

                   As at the reporting date, the assets of the scheme are sufficient to meet the vested
                   benefits,

                   The most recent actuarial assessment of the scheme was undertaken as at 1 July
                   2012. The actuary indicated that “the Regional DBF is currently in a satisfactory but
                   modest financial position and remains vulnerable to adverse short and medium term
                   experience,”
                   Following the previous actuarial assessment in 2009, councils were advised by the
                   trustee of the scheme, following advice from the scheine’s actuary, that additional
                   contributions may be imposed in the future at a level necessary to protect the
                   entitlements of Regional DBF members. In the 2012 actuarial repori the actuary has
                   recommended no change to the employcr contribution levels at this time.
                   Under the Local Government Act 2009 the trustee of the scheme has the power to
                   levy additional contributions on councils which have employees in the Regional
                   DBF when the actuary advises such additional contributions are payable - normally
                   when the assets of the DBF are insufficient to meet members’ benefits.

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