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Note 23: Administered - Provisions

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2015 2014
Notes $'000 $'000

23A: Employee provisions

Leave 1,349 771
Employee provisions expected to be settled
No more than 12 months 700 412
More than 12 months 649 359
Total employee provisions 1,349 771

23B: Makegood provisions

Provision for restoration obligations 1,248
Makegood provisions expected to be settled
More than 12 months 1,248

23C: Superannuation provision - former Solicitor-General pension

Present value of defined benefit obligations at end of the year 5,600 5,800
 
Personal benefits provisions expected to be settled
No more than 12 months 400 400
More than 12 months 5,200 5,400
Total personal benefits 5,600 5,800

Accounting policy:

Actuarial gains and losses are recognised immediately in administered equity in the year in which they occur.

Scheme information:

Pension payments to former Solicitors-General are made under the Judges' Pension Scheme. The Judges' Pension Scheme is a defined benefit scheme. It provides 60% of the appropriate current judicial salary for eligible retired judges. The scheme is unfunded. Members do not contribute towards the cost of benefits.

Benefits payable (including payments of surcharge debt) under the Judges' Pension Act 1968 and the Superannuation (Productivity Benefit) Act 1988 are paid from Consolidated Revenue on an emerging (or pay as you go) basis.

Reconciliation of the present value of the defined benefit obligation

2015 2014
Notes $'000 $'000
Net liability at 1 July (5,800) (5,703)
Interest cost (200) (200)
Actuarial gains/(losses)
experience 86 (200)
changes in financial assumptions (100) (110)
Benefits paid 414 413
Net liability at 30 June (5,600) (5,800)
Reconciliation of the fair value of scheme assets
Opening fair value of scheme assets
Employer contributions 1 (414) (414)
Benefits paid 414 414
Closing fair value of scheme assets

1 Employer contributions include appropriations from the Consolidated Revenue Fund

Reconciliation of the net surplus/(deficit) to recognised assets and liabilities in the schedule of assets and liabilities administered on behalf of Government

30 June 30 June
2015 2014
As at $'000 $'000
Defined benefit obligation 5,600 5,800
Net superannuation liability 5,600 5,800

Total expense recognised in the schedule of comprehensive income administered on behalf of Government

30 June 30 June
2015 2014
For the period ended $'000 $'000
Interest cost 200 200
Net superannuation expense 200 200
Note 23: Administered - provisions continued

Cumulative amount of actuarial gains and losses recognised in administered equity:

30 June 30 June
2015 2014
For the period ended $'000 $'000
Cumulative amount of actuarial gains (1,300) (1,300)

Scheme assets:

The scheme is an unfunded arrangement with no assets.

Expected rate of return on scheme assets:

The expected return on assets assumption is not relevant as the scheme is an unfunded arrangement with no assets.

Principal actuarial assumptions at the balance sheet date:

30 June 30 June
2015 2014
For the period ended $'000 $'000
Discount rate 3.70% 4.30%
Expected salary increase rate 4.00% 4.00%
Expected pension increase rate 4.00% 4.00%

Other material assumptions:

The demographic assumptions used as at 30 June 2014 are those used for the preparation of the Long Term Cost Report for the Judges' Pension Scheme as at 30 June 2011. The demographic assumptions used as at 30 June 2015 are those used for the preparation of the Long Term Cost Report for the Judges' Pension Scheme as at 30 June 2014.

Historical information:

30 June 30 June 30 June
2015 2014 2013
For the period ended $'000 $'000 $'000
Present value of defined benefit obligation 5,600 5,800 5,703
Surplus/(deficit) in scheme 5,600 5,800 5,703
Experience adjustments gain/(loss) - scheme liabilities (310) 1,100

The expected employer contributions in respect of 2015-16 are $400,000.

Funding arrangements for employer contributions:

Contribution recommendations

The Scheme is unfunded. The defined benefits are not funded in advance.

Funding method

Where a benefit in the Scheme becomes payable, the Australian Government assumes responsibility for the payment from the Consolidated Revenue Fund.

Economic assumptions

The long-term economic assumptions adopted for the last actuarial review of the scheme as at 30 June 2014 were:

Expected rate of return on assets (discount rate) 3.7%
Expected salary increase rate 4.0% + a promotional salary increase scale
Expected pension increase 4.0%

Nature of asset/liability

The Department has recognised a liability in the Schedule of Administered Assets and Liabilities in respect of its defined benefit superannuation arrangements administered on behalf of the Government. The former Solicitor-General's Pension Scheme does not impose a legal liability on the Department to cover any deficit that exists in the scheme.

The liability instead rests with the Australian Government. The Government has established the Future Fund for the purpose of accumulating assets to help meet this liability. The Future Fund is also intended to cover other superannuation unfunded liabilities including in relation to military schemes, Commonwealth public servants and Governors-General.

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