Looking out for your interests Operational Risk Financial Requirement General reserves (Reserve) We have established general reserves to provide The Government requires superannuation fund liquidity to assist in the management of the Fund trustees to hold adequate financial resources for the benefit of members. We manage and replenish (Reserve) to cover any losses that members incur due these reserves in accordance with its applicable to operational errors. The Reserve has been policy, with the guiding principle that the general established in full by corporate capital contributed reserves should be replenished from sources that are by the Trustee and its former ultimate shareholder. not easily allocated back to members, unless If the Reserve falls below our targets, we propose to members have been explicitly advised. fund the shortfall through corporate capital, rather The balance of the General reserve at the end of the than seeking contributions from members. This last 3 financial years is summarised below: means that we don't currently require members to 30 June 2023: $54M contribute to the Reserve, but members will be 30 June 2022: $44M notified if this changes in the future. As the Reserve 30 June 2021: $44M is held by the Trustee, it isn't reported in the financial statements of the Fund. For details of the balances and movement of the The balance of the Reserve at the end of the last 3 General reserve and other reserves, refer to the financial years is summarised below: Abridged financial information – Statement of 30 June 2023: $297M changes in reserves on page 21. 30 June 2022: $286M 30 June 2021: $288M MLC Super Fund 2023 Annual Report | 9
2023 | Annual Report Page 8 Page 10