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Forest NSW Annual Report 2012

Notes to and forming part of the financial statements For the year ended 30 June 2012 Fund assets The percentage invested in each asset class at the balance sheet date: 30-June-12 Australian equities 28.0% Overseas equities 23.7% Australian fixed interest securities 4.9% Overseas fixed interest securities 2.4% Cash 8.6% Property 19.5% Other 12.9% Fair value of Fund assets All Fund assets are invested by STC at arm’s length through independent fund managers. Expected rate of return on assets The expected return on assets assumption is determined by weighting the expected long-term return for each asset class by the target allocation of assets to each class. The returns used for each class are net of investment tax and investment fees. Actual Return on Fund Assets SASS SANCS SSS Financial Year Financial Year Financial Year Financial Year to 30 June 2012 to 30 June 2012 to 30 June 2012 to 30 June 2012 A$ A$ A$ Actual return on Fund assets (10 474) (1093) - Valuation method and principal actuarial assumptions at the balance sheet date a) Valuation Method The Projected Unit Credit (PUC) valuation method was used to determine the present value of the defined benefit obligations and the related current service costs. This method sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. b) Economic Assumptions       30-June-12 Salary increase rate (excluding promotional increases)     2.5% pa Rate of CPI Increase     2.5% pa Expected rate of return on assets     8.6% Discount rate     3.06% pa c) Demographic Assumptions The demographic assumptions at 30 June 2012 are those that were used in the 2009 triennial actuarial valuation. The triennial review report is available from the NSW Treasury website. Forests NSW Annual Report 2011–12 Social, Environmental and Economic Performance 79


Forest NSW Annual Report 2012
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