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Annual Financial Statements for year ended 30 June 2012
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26. Superannuation
Council makes employer superannuation contributions in respect of its employees to the Local Government
Superannuation Scheme. The Scheme has two categories of membership, each of which is funded differently.
Permanent and contract employees of the South Australian Local Government sector have the option to contribute to
Marketlink and/or Salarylink. All other employees, including casual staff, have all contributions allocated to
Marketlink.
Marketlink (Accumulation Fund) Members
Marketlink receives both employer and employee contributions on a progressive basis. Employer contributions are
based on a fixed percentage of employee earnings in accordance with superannuation guarantee legislation (9% in
2011/12 for Marketlink members and 3% for Salarylink members; 9% and 3% respectively in 2010/11). No further
liability accrues to the employer as the superannuation benefits accruing to employees are represented by their share
of the net assets of the Fund.
Salarylink (Defined Benefit) Members
Salarylink is a defined benefit scheme where the benefit payable is based on a formula determined by the member’s
contribution rate, number of years of contribution and final average salary. Council makes employer contributions to
Salarylink as determined by the Scheme’s Trustee based on advice from the Scheme’s Actuary. The rate is currently
6% (6% in 2010/11) of “superannuation” salary. Given that Employer contributions are based on a fixed percentage
of employee earnings in accordance with superannuation guarantee legislation the remaining 3% for Salarylink
members is allocated to their Marketlink account. Employees also make member contributions to the Fund. As such
assets accumulate in the Fund to meet the member’s benefits, as defined in the Trust Deed, as they accrue.
The Salarylink Plan is a multi-employer sponsored plan. As the Fund’s assets and liabilities are pooled and are not
allocated by employer, the Actuary is unable allocate benefit liabilities, assets and costs between employers. As
provided under AASB 119.32(b), Council does not use defined benefit accounting for these contributions.
The most recent full actuarial investigation was conducted by the Scheme’s actuary, L C Brett, BSc, FIA, FIAA, of
Brett and Watson Pty Ltd as at 30 June 2008. The trustee has determined that the current funding arrangements are
adequate for the expected Defined Benefit Plan liabilities. However future financial and economic circumstances
may require changes to Council’s contribution rates at some time in the future.
Contributions to Other Superannuation Schemes
Council makes contributions to other superannuation schemes selected by employees under the “choice of fund”
legislation. This is effective from 2011/2012 onwards and the names of the fund are detailed in the table below.
All such schemes are of the accumulation type, where the superannuation benefits accruing to the employee are
represented by their share of the net assets of the scheme with no liability attaching to the Council.
Total contributions by the Council
Name of Fund
2011-2012
$
2010-2011
$
Local Super
2,516,655
2,506,023
Unisuper
1,613
0
AXA Super
942
0
CBUS Super
1,469
0
Australian Super
1,857
0
REST Super
188
0
AMP Custom Super
325
0
Total
2,523,049
2,506,023
27. Notes to Cash Flow Statement
(a) Reconciliation of Cash
For the purposes of the statement of cash flows, cash includes cash on hand and in banks and investments in money
market instruments, net of outstanding bank overdrafts. Cash at the end of the reporting period as shown in the
statement of cash flows is reconciled to the related items in the balance sheet as follows:
Nature of Account
2011-2012
$
2010-2011
$
Cash & cash equivalents (Note 13)
39,220,608
32,103,819
Total
39,220,608
32,103,819
Notes to the Financial Statements