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Thursday, 17 August 1972
Page: 213

Senator DRURY asked the Minister representing the Treasurer, upon notice:

(1)   Is the Treasurer aware that the Defence Forces Retirement Benefits Board Annual Report 1970-71 states that the present amortised investments of the fund amount to more than$1 34m.

(2)   Is the return from this investment accumulated and re-invested; if so, as the investment comes from the contributions paid to the fund by members, will the Treasurer take action to have this profit returned to the contributors in the form of higher pensions and refunds.

Senator Sir KENNETH ANDERSON The Treasurer has provided the following answer to the honourable senator's question:

(1)   Yes.

(2)   Yes.

The income forms part of the Fund in accordance with Section 15 (2) of the Defence Forces Retirement Benefits Act. Together with contributions this income forms part of the assets of the Fund accumulated to ensure that the benefits promised under the scheme will be available for current members at all times.

The relationship of assets and liabilities is examined actuarially at 5 yearly intervals to establish whether there is a surplus or deficiency. If a surplus is disclosed the question of additional benefits which might become available is reported upon by the Actuary and considered by the Board and the Government. A quinquennial investigation for the period ended 30th June 1969 is now being carried out and the result is expected to be reported later this year.

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