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Background The Parliamentary Retiring Benefits Fund (PRBF) is a defined benefit lump sum scheme that was established under the provisions of the now repealed Parliamentary Retiring Benefits Act 1985. The scheme covers those members of Parliament first elected after 12 November 1985 but before 1 July 1999. In accordance with the provisions of the Retirement Benefits (Parliamentary Superannuation Trustee Arrangements and Miscellaneous Amendments) Act 2002, the PRBF became a subfund of the RBF with effect from 1 January 2003. Trustee Prior to 1 January 2003, the Parliamentary Superannuation and Retiring Benefits Trust (PSRB Trust) was the trustee of the PRBF. As outlined above, the RBF Board became the trustee of the PRBF as from that date. Scheme Design The PRBF scheme rules are now established in Part 4 of the Retirement Benefits (Parliamentary Superannuation) Regulations 2002. PRBF members contribute at the rate of nine per cent of their parliamentary salary during their first 20 years in Parliament and thereafter at nine per cent of the amount by which the member’s parliamentary salary exceeds the basic parliamentary salary. A lump sum benefit is payable on:
While PRBF members are not able to convert their lump sum benefit to a life pension, they may purchase an allocated pension from the RBF Board or the private sector. Membership Membership of the PRBF scheme is outlined in Table 12. Table 12 Membership of the PRBF scheme
Funding The PRBF is classed as a fully funded superannuation scheme as the employer contributions are paid to the fund each parliamentary pay period, that is, twice per month. At the time of the establishment of the PRBF in 1985, the scheme design provided for the employer to contribute at the rate of 2.5 times the rate of the members’ contributions. Since the scheme was established, the State Actuary has recommended changes to the funding level on two occasions, as outlined in Table 13. The Treasurer pays the employer contributions to the RBF Board (prior to 1 January 2003, these payments were made to the PSRB Trust) each pay period. As the PRBF is a defined benefit scheme, it is possible that, notwithstanding the regular payment of the employer contributions, the scheme has unfunded liabilities. For example, this could occur if investment returns or salary increases at a point in time exceed the long term assumptions made by the State Actuary.
The Treasurer currently pays to the RBF Board an employer superannuation contribution equivalent to 23.4 per cent of each PRBF members’ parliamentary salary, being 2.6 times the member’s nine per cent contribution, together with a contribution with respect to the administrative expenses associated with the PRBF scheme. Liabilities The liabilities of the PRBF scheme since 1995 are outlined in Table 14. There were no actuarial reviews of the PRBF scheme for the years ended 30 June 1996 and 30 June 1997.
Note:
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