Defined Benefit plans are required by law to have an actuarial investigation at least once every three years. Because Vision Super’s Defined Benefit plan (LASF DB) provides lifetime pensions, a mini review is held every in-between year. The vested benefit position of the LASF DB is reviewed on a quarterly basis. Details of the VBIs are as follows.
| VESTED BENEFIT INDEX (VBI) | ||||
|---|---|---|---|---|
| Year | QTR 1 - September (estimated) | QTR 2 - December (estimated) | QTR 3 - March (estimated) | QTR 4 - June (actual) |
| 2012/13 | 96.6% | 97.9% | 99.4% | 100.7% |
| 2013/14 | 103.1% | 105.1% | 104.6% | 103.4% |
| 2014/15 | 102.6% | 103.1% | 108.5% | 105.8% |
| 2015/16 | 104.0% | 104.4% | 102.4% | 102.0% |
| 2016/17 | 103.7% | 105.4% | 106.6% | 103.1% |
| 2017/18 | 103.8% | 106.4% | 106.2% | 106.0% |
| 2018/19 | 106.9% | 101.9% | 105.4% | 107.1% |
| 2019/20 | 107.3% | 107.7% | 102.1% | 104.6% |
| 2020/21 | 104.5% | 109.6% | 111.5% | 109.8% |
| 2021/22 | 109.9% | 111.2% | 108.5% | 102.2% |
| 2022/23 | 101.5% | 101.7% | 104.2% | 104.1% |
| 2023/24 | 102.3% | 103.8% | 106.3% | 105.4% |
Employers are required to make specific superannuation disclosures in their financial statements in relation to the LASF DB in accordance with AASB 119 – Accounting for Employee Benefits. To help employers participating in LASF DB we prepare a sample note as a guide each year. Downloadable PDF copies of these sample notes are available in the table below:
At the end of each triennial/annual review, the Fund Actuary issues a report that outlines the findings and recommendations of the review. You’ll find copies of the reports below.
The Fund Actuary has issued the following Benefit Certificates, confirming that employers have met their Superannuation Guarantee obligations in relation to their defined benefit employees. The Certificates will remain current for five years unless a notifiable event occurs.
| Certificate | Effective date | Valid until* |
|---|---|---|
| LASF Benefit Certificate 2022 | 1 July 2022 | 1 June 2027 |
| LASF Benefit Certificate 2020 | 1 July 2020 | 1 June 2025 |
| LASF Benefit Certificate 2018 | 1 July 2018 | 30 June 2023 |
| LASF Benefit Certificate 2015 | 1 April 2015 | 31 March 2020 |
| LASF Benefit Certificate 2013 | 1 July 2013 | 30 June 2018 |
| LASF Benefit Certificate 2008 | 1 July 2008 | 1 July 2013 |
| *Unless a notifiable event occurs. |
Vision Super regularly obtains a Funding and Solvency Certificate from the Fund Actuary. They are valid for five years unless a notifiable event occurs. Under the regulations, the Certificates must be replaced 12 months before they expire. Copies of the Certificates are below.
| Certificate | Effective date | Expiry date | Replacement date |
|---|---|---|---|
| FSC 2022 | 1 July 2022 | 30 June 2027 | 30 June 2026 |
| FSC 2020 | 1 July 2020 | 30 June 2025 | 30 June 2024 |
| FSC 2018 | 1 July 2018 | 30 June 2023 | 30 June 2022 |
| FSC 2015 | 1 April 2015 | 31 March 2020 | 31 March 2019 |
| FSC 2013 | 1 July 2013 | 30 June 2018 | 30 June 2017 |
| FSC 2012 | 27 March 2012 | 31 Dec 2016 | 31 Dec 2015 |
The same process for apportioning pension and active member liabilities has been applied since 1998 when LASF was set up under its trust deed. This reflects the methodology established in 1997 when LASF was operated under State legislation. Application of the process was externally reviewed by PriceWaterhouseCoopers.
In summary, the methodology provides for two components:
Pre-30 June 1993 Component
Post-30 June 1993 Component
All employers pay Workers compensation premiums and some pay Payroll tax. Generally, 100% of an employer’s defined benefit contributions are included in the employer’s Workers compensation and Payroll tax calculations. However, where a funding call is made, a portion of the funding call payment may be excluded for Workers compensation/Payroll tax purposes. The Fund Actuary has previously provided letters advising what proportion of a funding call is assessable.
| Workers Compensation | Payroll Tax |
|---|---|
| 2010 letter | 2010 letter |
| 2011 letter | 2011 letter |
Please note: Worksafe has raised a number of issues regarding the treatment of a funding call for WorkCover purposes. The Worksafe letter may be of assistance.
What are the LASF DB demographics at the dates of the recent actuarial reviews?
The Defined Benefit membership statistics were as follows.
| Member type | Review date | |||||||
|---|---|---|---|---|---|---|---|---|
| 30 June 2022 | 30 June 2021 | 30 June 2020 | 30 June 2019 | 30 June 2018 | 30 June 2017 | 30 June 2014 | 31 Dec 2011 | |
| Active member | ||||||||
| Number | 1,444 | 1,700 | 1,954 | 2,198 | 2,529 | 2,855 | 3,983 | 4,971 |
| Average Age | 58.0 years | 57.7 years | 57.3 years | 56.9 years | 56.7 years | 56.3 years | 55.2 years | 54.1 years |
| Average Past Membership | 33.8 years | 33.0 years | 32.2 years | 31.3 years | 30.4 years | 29.5 years | 26.9 years | 24.6 years |
| Average Salary | $96,481 | $95,036 | $93,843 | $91,326 | $88,738 | $86,885 | $78,502 | $70,727 |
| Lifetime Pensioners | ||||||||
| Number | 4,071 | 4,124 | 4,189 | 4,465 | 4,449 | 4,597 | 4,882 | 5,132 |
| Average Age | 77.5 years | 77.4 years | 77.4 years | 78.2 years | 78.3 years | 78.5 years | 79.0 years | 79.1 years |
| Average Annual Pension | $16,076 | $14,878 | $14,184 | $12,948 | $12,102 | $11,187 | $8,862 | $7,172 |
| Deferred Beneficiaries | ||||||||
| Number | 1,143 | 1,227 | 1,292 | 1,366 | 1,511 | 1,598 | 1,910 | 2,212 |
| Average Age | 57.6 years | 57.0 years | 56.3 years | 55.6 years | 55.0 years | 54.3 years | 52.9 years | 51.7 years |
| Average Account Balance | $257,950 | $271,064 | $240,311 | $234,464 | $218,851 | $204,048 | $180,571 | $149,842 |
You might find the answer to your question in the FAQ below. If you don’t find it there, you can call our Employer hotline on 1300 304 947.
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