Background

The RBF non-contributory scheme (NCS) was established in the 1994 Regulations for those employees who were not eligible to join the RBF defined benefit scheme (eg temporary, fixed-term and casual employees). The RBF non-contributory scheme also comprised those permanent employees who had previously opted out of the RBF defined benefit scheme. Permanent employees who commenced public sector employment on or after 15 May 1999 but before 25 April 2000 were also members of the RBF non-contributory scheme.

All members of the non-contributory scheme were transferred to the fully funded, fully taxed Tasmanian Accumulation Scheme upon its commencement on 25 April 2000.

Trustee

The trustee of the RBF non-contributory scheme was the RBF Board.

Scheme Design

The RBF non-contributory scheme was an unfunded accumulation scheme in which notional employer contributions, at the appropriate Superannuation Guarantee (SG) rate (refer Table 19), were credited to the accounts of non-contributory scheme members. The 1994 Regulations also provided that interest, at the Commonwealth Long Term Bond Rate, was credited to these accounts.

Membership

Membership of the former RBF non-contributory scheme is shown in Table 6.

Table 6 Membership of the former RBF non-contributory scheme

		Members	Percentage change from previous year
30 June 1995		22 078	n.a.
30 June 1996		24 025	8.8
30 June 1997		23 638	(1.6)
30 June 1998		23 697	0.2
30 June 1999		25 478	7.5
30 June 2000		…	(100.0)

Funding

The RBF non-contributory scheme was an unfunded scheme, with the employer benefit being met on an emerging cost basis upon the retirement of the employee. No employee contribution was required.

If a non-contributory scheme member resigned prior to attaining his or her preservation age, his or her non-contributory scheme benefit was transferred to the Compulsory Preservation Account established under the 1994 Regulations. The employer funds these benefits when the former non-contributory scheme member attains his or her preservation age or otherwise becomes entitled to payment of the benefit (eg financial hardship).

Liabilities

Table 7 shows the liabilities of the non-contributory scheme from 1995 until the scheme was superseded by TAS in April 2000. At that time, these benefits were funded and therefore became portable.

The liabilities of the non-contributory scheme for the General Government sector have been included in the total gross liabilities of the RBF scheme, which are shown in Table 5. These were assumed to be 87 per cent of the total RBF non-contributory scheme liabilities until 2000.

Table 7 Gross liability – RBF non-contributory scheme – General Government sector

		Gross liability	Percentage change from previous year
		$m
30 June 1995		30	n.a.
30 June 1996		49	63.2
30 June 1997		53	8.1
30 June 1998		57	7.8
30 June 1999		63	9.4
30 June 2000		…	(100.0)