I am very pleased to see in today's announcement that the deficit in the pension scheme has been acknowledged at long last!
"In addition, lump sum funding payments of approximately $10.3 million were made to the group’s Defined Benefit Pension Scheme (Plan) to bring the Plan into actuarial equilibrium in June 2019.”
|
EOFY2016 |
EOFY2017 |
EOFY2018 |
EOFY2019 |
13-08-2019 |
Discount Rate (10yr govt bond rate) |
2.34% |
2.97% |
2.85% |
1.57% |
1.10% |
Inflation |
2.0% |
2.0% |
2.0% |
2.0% |
Future Salary Increases |
3.0% |
3.0% |
3.0% |
3.0% |
Future Pension Increases |
2.0% |
2.0% |
2.0% |
2.0% |
However, has squaring the scheme up as at 30th June 2019 fixed the issue? Sadly no, as interest rates, and the critical ten year government bond rate, have continued to fall since balance date.
$10m in. Another $10m to go? Perhaps the 'dividend haircut' will continue for a few more years?