Super SA

In reply to the Hon. S.C. MULLIGHAN (Lee) (28 July 2021). (Estimates Committee B)

The Hon. R.I. LUCAS (Treasurer): I have been advised the following:

1. The $30 million return of deposit account balances – superannuation referred to in Budget Paper 4, Volume 4, page 171 is a budgeted receipt to the Consolidated Account in 2021-22. There has not been any actual return of deposit account balances – superannuation to the Consolidated Account in either 2020-21 or 2021-22 to date.

This budget line, along with a corresponding payment line in Budget Paper 4, Volume 4, page 175 payments to the South Australian superannuation funds, is used to facilitate the transfer of funds between superannuation schemes via the Consolidated Account. This occurs, when the need arises in a financial year, to ensure that the Parliamentary Superannuation Scheme, Judges' Pensions Scheme and the Governors' Pensions Scheme are maintained in a balanced position (a surplus equivalent to at least 10 per cent of liabilities). When any of these superannuation schemes are in either an excess or deficit position, these transfers occur to return them to a balanced position.

2. This budget line is the same line that was used in 2018-19 to transfer excess funds from the Parliamentary Superannuation Scheme and the Judges' Pensions Scheme into the Consolidated Account. These funds were then paid back from the budget line Payments to the South Australian Superannuation Fund to the Governors' Pension Scheme and the South Australian Superannuation Scheme – Employer Account.

This practice is consistent with the Parliamentary Superannuation Act 1974 which requires the parliamentary defined benefit schemes to be fully funded. There is no similar requirement in the other two schemes, however, they are kept in balance by adopting the same statutory requirement as the parliamentary scheme. Where the financial results and actuarial assessments for any of the three schemes shows them to be in either an excess or deficit position, any excess funds will be transferred via the Consolidated Account to the schemes in deficit.