Telstra 2009 Annual Report Download - page 192

Telstra Corporation Limited and controlled entities
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Notes to the Financial Statements (continued)
The employee superannuation schemes that we participate in or
sponsor exist to provide benefits for our employees and their
dependants after finishing employment with us. It is our policy to
contribute to the schemes at rates specified in the governing rules for
defined contribution schemes, or at rates determined by the actuaries
for defined benefit schemes.
The defined contribution divisions receive fixed contributions and our
legal or constructive obligation is limited to these contributions.
The present value of our obligations for the defined benefit plans are
calculated by an actuary using the projected unit credit method. This
method determines each year of service as giving rise to an additional
unit of benefit entitlement and measures each unit separately to
calculate the final obligation.
Details of the defined benefit plans we participate in are set out below.
Telstra Superannuation Scheme (Telstra Super)
On 1 July 1990, Telstra Super was established and the majority of
Telstra staff transferred into Telstra Super. The Telstra Entity and
some of our Australian controlled entities participate in Telstra Super.
Telstra Super has both defined benefit and defined contribution
divisions. The defined benefit divisions of Telstra Super are closed to
new members.
The defined benefit divisions provide benefits based on years of
service and final average salary. Post employment benefits do not
include payments for medical costs.
Contribution levels made to the defined benefit divisions are designed
to ensure that benefits accruing to members and beneficiaries are
fully funded as the benefits fall due. The benefits received by
members of each defined benefit division take into account factors
such as the employees’ length of service, final average salary,
employer and employee contributions.
An actuarial investigation of this scheme is carried out at least every
three years. The next investigation will be carried out as at 30 June
2009, and work on this has commenced.
HK CSL Retirement Scheme
Our controlled entity, Hong Kong CSL Limited (HK CSL), participates in
a superannuation scheme known as the HK CSL Retirement Scheme.
This scheme was established under the Occupational Retirement
Schemes Ordinance (ORSO) and is administered by an independent
trustee. The scheme has three defined benefit sections and one
defined contribution section. Actuarial investigations are undertaken
annually for this scheme.
The benefits received by members of the defined benefit schemes are
based on the employees’ remuneration and length of service.
Measurement dates
For Telstra Super actual membership data as at 30 April was used to
value precisely the defined obligations as at that date. Details of
assets, contributions, benefit payments and other cash flows as at 31
May were also provided in relation to Telstra Super. These April and
May figures were then rolled up to 30 June to allow for changes in the
membership and actual asset return.
Actual membership data as at 31 May was used to precisely measure
the defined benefit liability as at that date for the HK CSL Retirement
Scheme. Details of assets, contributions, benefit payments and other
cash flows as at 30 June were also provided in relation to the HK CSL
Retirement Scheme.
The fair value of the defined benefit plan assets and the present value
of the defined benefit obligations as at the reporting date is
determined by our actuary. The details of the defined benefit
divisions are set out in the following pages.
Other defined contribution schemes
A number of our subsidiaries also participate in defined contribution
schemes which receive employer and employee contributions based
on a percentage of the employees’ salaries. The Telstra Group made
contribution to these schemes of $26 million for fiscal 2009 (2008: $23
million).
24. Post employment benefits