Annual Report 2021-22

Noosa Council
Notes to the Financial Statements
for the year ended 30 June 2022

Note 26. Superannuation
§Subnote§




Council contributes to the LGIAsuper Regional Defined Benefits Fund (the scheme), at the rate of 12% for each permanent
employee who is a defined benefit member. This rate is set in accordance with the LGIAsuper trust deed and may be varied on
the advice of an actuary. The Regional Defined Benefits Fund is a complying superannuation scheme for the purpose of the
Commonwealth Superannuation Industry (Supervision) legislation and is also governed by the Local Government Act 2009.

The scheme is a pooled defined benefit plan and it is not in accordance with the deed to obligations, plan assets and costs
at the Council level.

Any amount by which the scheme is over or under funded may affect future benefits and result in a change to the contribution
rate, but has not been recognised as an asset or liability of the Council.

Technically Council can be liable to the scheme for a portion of another local governments’ obligations should that local
government be unable to meet them. However the risk of this occurring is extremely low and in accordance with the LGIAsuper
trust deed changes to council's obligations will only be made on the advice of an actuary.

The last completed actuarial assessment of the scheme was undertaken as at 1 July 2021. The actuary indicated that “At the
valuation date of 1 July 2021, the net assets of the scheme exceeded the vested benefits and the scheme was in a satisfactory
financial position as at the valuation date." The measure of vested benefits represents the value of benefit entitlements should
all participating employees voluntarily exit the scheme. The Council is not aware of anything that has happened since that time
that indicates the assets of the scheme are not sufficient to meet the vested benefits, as at the reporting date.

No changes have been made to prescribed employer contributions which remain at 12% of employee salary or wages and
there are no known requirements to change the rate of contributions.

The next triennial actuarial review is not due until 1 July 2024.

The most significant risks that may result in LGIAsuper increasing the contribution rate, on the advice of the actuary, are:

Investment risk - The risk that the scheme's investment returns will be lower than assumed and additional contributions are
needed to fund the shortfall.

Salary growth risk - The risk that wages or salaries will rise more rapidly than assumed, increasing vested benefits to be funded.

$ '000                                                                             Notes               2022                2021

Superannuation contributions made to the Regional Defined Benefits Fund                                  168                 189
Other Superannuation Contributions for employees                                                       3,599               3,405
Total Superannuation Contributions paid by Council for
employees                                                                            6                3,767               3,594




                                                                                                                      Page 41 of 62