This section describes a range of employment and post employment benefits provided to our people and our relationships with other key people.
4.1 Employee Provisions
4.1A: Employee Provisions
Total employee provisions
Liabilities for ‘short-term employee benefits and termination benefits expected within twelve months of the end of reporting period are measured at their nominal amounts.
Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.
The liability for employee benefits includes provision for annual leave and long service leave.
The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including IPEA’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.
The liability for long service leave has been determined by reference to the shorthand method as at 30 June 2020. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.
IPEA's staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), or the PSS accumulation plan (PSSap), or other superannuation funds held outside the Australian Government.
The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.
The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes.
IPEA makes employer contributions to the employees' defined benefit superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The entity accounts for the contributions as if they were contributions to defined contribution plans.
The liability for superannuation recognised as at 30 June represents outstanding contributions.
4.1B: Administered Provisions
Post retirement travel - parliamentarians
Parliamentary retirement travel - former prime ministers
Total administered provisions
Provision for post retirement travel is for former parliamentarians who retire on or after 1 July 2017 being eligible to travel at Commonwealth expense for a maximum of three economy class return trips within the first three months after his or her retirement from the Parliament. The provision is restricted to travel between the former parliamentarian’s home base and either Canberra or a location or locations where the parliamentarian had a publicly funded electorate office. The provision cannot be used by any person other than the former parliamentarian.
Provision for parliamentary retirement travel is for former prime ministers (having held office for a minimum period of one year), a spouse or de facto partner of a former prime minister or a surviving spouse or de facto partner of a deceased prime minister. The provision reflects entitlement to undertake certain air travel at Commonwealth expense for non-commercial purposes.
4.2 Key Management Personnel Remuneration
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity. IPEA has determined the key management personnel to be the Members of the Authority, Chief Executive Officer, Branch Manager - Travel, Education and Advice, Branch Manager - Transparency, Assurance and Legal, and the Branch Manager - Corporate, Governance and Strategy. Key management personnel remuneration is reported in the table below:
Short-term employee benefits
Other long-term employee benefits
Total key management personnel remuneration expenses
The total number of key management personnel that are included in the above table is 11 (2019: 11).
1. The above key management personnel remuneration excludes the remuneration and other benfits of the Portfolio Minister. The Portfolio Minister's remuneration and other benefits are set out by the Remuneration Tribunal and are not paid by the entity.
2. The President of the Remuneration Tribunal is an ex officio member of the Authority, but under the Independent Parliamentary Expenses Authority (President of the Remuneration Tribunal Fees and Allowances) Rule 2017 does not receive any remuneration from IPEA.
4.3 Related Party Disclosures
Related party relationships:
IPEA is an Australian Government controlled entity. Related parties to IPEA are the Key Management Personnel and their close family members, Cabinet Ministers and other Australian Government entities.
Transactions with related parties:
Given the breadth of Government activities, related parties may transact with the government sector in the same capacity as ordinary citizens. Such transactions include the payment or refund of taxes, receipt of a Medicare rebate or higher education loans. These transactions have not been separately disclosed in this note.
Giving consideration to relationships with related parties, and transactions entered into during the reporting period by IPEA, it has been determined that there are no related party transactions to be separately disclosed.