Telstra 2007 Annual Report Download - page 201

Telstra Corporation Limited and controlled entities
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Notes to the Financial Statements (continued)
(g) Employer contributions
Telstra Super
In accordance with our funding deed with the t rustee of Telstra Super,
we are required to make future employer payments to Telstra Super in
relation to the defined benefit plan as may be required. Our
cont ributions to Telstra Super will recommence when the vested
benefit s index (VBI) - the ratio of defined benefit plan assets to defined
benefit members’ vested benefits - falls to 103% or below. Our actuary
is satisfied that contributions to maintain the VBI at this rate will
maintain the financial position of Telstra Super at a satisfactory level.
The VBI of the defined benefit divisions is 117% as at 30 June 2007 (30
June 2006: 115%). In calculating the VBI, defined benefit members’
total voluntary account balances have been excluded from Telstra
Super’s assets and vested benefits. This approach is consistent with
the definition of VBI in the funding deed.
As at 30 June 2006, K O'Sullivan FIAA completed an actuarial
investigation of Telstra Super. The next actuarial investigation of
Telstra Super is due to be completed by 30 June 2010 based on the
scheme’s financial position as at 30 June 2009.
The actuarial investigation of Telstra Super reported that a surplus
continued to exist. In accordance with the recommendations within
the actuarial investigation, we were not expected to, and did not
make employer contributions to the Telstra Super defined benefit
divisions for the financial year ended 30 June 2007 and 30 June 2006.
The current contribution holiday includes the contributions otherwise
payable to the accumulation divisions of Telstra Super. The
cont inuance of the holiday is however dependent on the performance
of the fund and we are monitoring the situation on a monthly basis.
Telstra Entity’s contribution to the defined contribution divisions of
Telstra Super were insignificant for fiscal 2007 and fiscal 2006. Based
on the lat est actuarial investigation, we do not expect to make any
contributions to Telstra Super during fiscal 2008.
HK CSL Retirement Scheme
The contributions payable to the defined benefit divisions are
determined by the actuary using the attained age normal funding
actuarial valuat ion method.
Employer contributions made to the HK CSL Retirement Scheme for
the financial year ended 30 June 2007 were $3 million (2006: $3
million). We expect to contribute $2 million t o our HK CSL Retirement
Scheme in fiscal 2008.
Annual actuarial investigat ions are currently undertaken for this
scheme by Watson Wyat t Hong Kong Limited.
28. Post employment benefits (continued)