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Legislative Council - Fifty-Fifth Parliament, First Session (55-1)
2023-02-07 Daily Xml
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Super SA

180 The Hon. H.M. GIROLAMO ().16 November 022). Can the Treasurer advise—

1. What portion of superannuation liability as administered by Super SA is unfunded?

2. What is the total amount unfunded but on track to be covered by 2034?

3. What measures have Super SA put in place to resolve this? (November 16)

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector): The Treasurer has advised:

1. 47.5 per cent of the total defined benefit superannuation liability is unfunded as at 30 June 2022.

2. The total unfunded liability to be fully funded by 2034 is $7.06 billion as at 30 June 2022. The government superannuation liabilities and assets are determined under the accounting standard AASB 119 and are included in the consolidated financial report. The amount reported each year depends mainly on current interest rates and investment returns in addition to the experience of contributors and pensioners. The unfunded liability relates only to the defined benefit superannuation schemes which are mainly closed to new entrants. The majority of the unfunded liability relate to two schemes, $5.82 billion for SA Superannuation Scheme and $1.21 billion for the Police Superannuation Scheme.

3. To fully fund the government's superannuation liability by 2034, the government has a program of past service payments which are paid monthly in addition to normal employer contributions required to meet employer obligations for current employees. These past service payments increase with salary inflation each year but are also reassessed as the unfunded liability changes. The assets held in respect of defined benefit schemes are invested with Funds SA and are mainly invested in a high growth investment option with asset allocations and investment objectives specially designed for fully funding these defined benefit schemes.

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