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Notes to the consolidated fnancial statements (continued)

for the year ended 30 June 2011

13. Defned beneft fund obligations

Certain subsidiaries of the Company sponsor defned benefts superannuation plans for employees of the Suncorp Group. Each superannuation fund provides benefts to members on retirement, death or disability. All defned beneft funds are now closed to new members, with new employees now being given membership of a defned contribution fund.

The objective of funding is to ensure that the beneft entitlements of members and other benefciaries are fully funded by the time they become payable. To achieve this objective, the actuaries use the Projected Unit Cost method to annually determine the present value of the defned beneft obligations.

The table below shows the net position recognised in relation to defned beneft funds as at balance date.

The Suncorp Group intends to continue to contribute to the defned beneft funds at rates of 0%–20% (2010: 0%–20%) of salaries in line with the actuaries’ latest recommendations. This will amount to an expected contribution of $5 million (2010: $4 million).

Net Surplus Net Surplus Surplus (Defcit) (Defcit) Surplus (Defcit) (Defcit) 2011 2011 2011 2010 2010 2010 $m $m $m $m $m $m

Defned beneft funds – surplus (defcit) position

Australia

Suncorp Staff Superannuation Plan 1 – – – 1 – 1 Suncorp Defned Beneft Fund 2 2 – 2 7 – 7 AAMI Staff Superannuation Fund 1 – 1 1 – 1 New Zealand

Vero and Asteron New Zealand

Staff Pension Scheme – (19) (19) – (19) (19) RIG Superannuation Fund – (4) (4) – (5) (5) Commercial Union General Insurance

Staff Pension Scheme – (1) (1) – (1) (1) Guardian Assurance Superannuation Fund 1 – 1 – – – Total surplus (defcit) 4 (24) (20) 9 (25) (16)

Notes

1 Current defned beneft members of the Suncorp Staff Superannuation Plan were transferred to the Suncorp Defned Beneft Fund on 30 June 2011.

2 Promina Group Staff Superannuation Fund was renamed Suncorp Defned Beneft Fund on 30 June 2011.

13.1 Principal actuarial assumptions and employer contributions

CONSOLIDATED

Australia New Zealand 2011 2010 2011 2010 % % % %

Employer contribution rate 1 14.9 15.1 0–20 0–20 Discount rate at 30 June 5.0 4.8 3.7 3.9 Expected return on fund assets at 30 June 6.9 6.9 5.7 5.7 Future salary increases 4.0 3.0 4.0 4.0

Note

1 Not all funds are contributing for members.

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 asset class and allowing for the correlations of the investment returns between asset classes. The returns used for each asset class are net of investment tax and investment fees.