Beneficiary Fund
1. INTRODUCTION
The last Triennium has been an exacting but successful period for the Beneficiary Fund.
Regulatory changes, increased reporting standards, potential of Y2K problems, introduction of GST and market volatility have increased the demands on the Board of Directors and Management.
A competent, diversely skilled, committed and long serving Board of Directors is the foundation on which the Fund continues to achieve good results and provide high standards of service.
Dedicated staff complement Management's desire to effectively embody the policy and intention of the Directors.
Quality external advisors provide essential professional advice. This informs the judgments of Directors and Management.
Rev L Turner, Mrs L Stokes and Mr R Porter resigned as Directors. Rev P Blackwood, Ms R Waldon and Mr R Key were elected.
2. STATISTICAL DETAILS
2.1 Fund Membership:
December 1996 December 1999
Active 1,490 1,485 (including 115 Accumulation Only)
Pensioner 1,126 1,220
Retirements occurred at a greater rate than enrolments
2.2 Age Profile - at 31 December 1999
|
Actives (Category I & II) |
Retirees |
||||||
|
Age |
Female |
Male |
Total |
Age |
Female |
Male |
Total |
|
20-29 |
3 |
4 |
7 |
40-49 |
8 |
4 |
12 |
|
30-39 |
34 |
106 |
140 |
50-59 |
27 |
14 |
41 |
|
40-49 |
96 |
315 |
411 |
60-69 |
83 |
232 |
315 |
|
50-59 |
119 |
421 |
540 |
70-79 |
127 |
330 |
457 |
|
60-69 |
40 |
231 |
271 |
80-89 |
169 |
137 |
306 |
|
70 |
1 |
- |
1 |
90-99 |
45 |
19 |
64 |
|
100+ |
2 |
3 |
5 |
||||
|
Total |
293 |
1077 |
1370 |
Total |
461 |
739 |
1200 |
2.3 Manager Diversification
Pension liabilities are segregated from the Core Portfolio. Assets are managed as follows;
Core Portfolio - In House $130.8 million
- External 32.9 million
Pension Portfolio – Government Annuities/Bonds 66.7 million
Total Assets to meet liabilities $230.4 million
2.4 Investment Strategy
Core Portfolio assets are spread across major market sectors to minimise risk and maximise returns.
An Internal Investment Objective of CPI + 4% has been exceeded during 1997 -1999, by 6.5%, 5.7%, 11.3% respectively.
2.5 Asset Allocations at 31 December 1999
2.6 Notional Stipend - basis for Benefit payments
1 January 1978 $8,200 (Inception of Fund)
1 January 2000 $31,200 ($26,357 if increased by CPI since 1978)
2.7 Benefits - Contributions received compared with Payments made in 1999.
Contributions received $7.5 million; Benefits paid $10 million.
2.8 Management Expense Ratio
Management costs continue to be amongst the lowest in the Superannuation Industry.
|
Beneficiary Fund |
Other Funds |
|
|
Administration Cost as % of Assets |
0.48% |
(-) |
|
Investment expenses - Total Portfolio - Core Portfolio |
0.15% 0.20% |
(0.25 - 0.85%) |
3. MEMBERS MATTERS
3.1 Active Members
Benefits - may be increased by:
Lump Sums - at retirement
Pension - at retirement
3.2 Pensioners
Benefits
4. GENERAL
4.1 Australian Prudential Regulation Authority
An extensive review was conducted in 1998. The Fund achieved a high standard.
4.2 Acturial Updates
The Actuary conducts regular reviews and reports that the Fund has adequate assets to meet its liabilities and sufficient solvency to address market fluctuations
4.3 Year 2000
Careful preparations were undertaken. No dis-ruption occurred on critical dates.
4.4 Preservation
From 1 July 1999 all Member and Employer Contributions, as well as Fund earnings are affected by Preservation requirements.
4.5 Rules
Changes are made when essential, to meet legislative requirements or facilitate more effective definition and/or operation.
Examples are:
4.6 Retirement of Executive Director
The Rev C Dickinson will retire at 31 December 2000. The Board is seeking an Executive Director designate.
Rev G L Turner
Chairperson
Rev C Dickinson
Executive Director