Qantas will top up super fund

Qantas will top up one of its defined benefit superannuation funds by A$66 million over the next three years to make up for lower returns caused by falls in financial markets.

A defined benefit plan is a superannuation scheme whereby superannuitants will receive an agreed amount, no matter the performance of the fund.

Qantas said the revised funding plan for the defined benefit divisions of the Qantas Superannuation Plan had been agreed with the plan's trustee to reflect the adverse performance of financial markets over recent months.

"In addition to current contributions, further payments totalling A$66 million will be made by the company over the next three years," the airline said yesterday.

The plan has assets of around A$5 billion, it said.

Qantas said despite the challenging economic environment the plan remained in a strong financial position.

"Member benefits continue to be met and the trustee maintains its focus on managing the plan over the long term for the benefit of all members," it said.

The new funding plan had been agreed with the plan's trustee and confirmation of the new plan has been provided to the regulator for superannuation, the Australian Prudential Regulation Authority, it said.

- AAP