Page 3461 - Week 08 - Thursday, 23 August 2012
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video
Proposed expenditure—Part 1.9–Superannuation Provision Account—$147,649,000 (capital injection), totalling $147,649,000.
MR SMYTH (Brindabella) (8.40): The superannuation provision account is a very important account for the ACT and for her public servants. I note that the key issue with the SPA is the quantum of liabilities in the account and the proportion of liabilities covered by assets held in this account. In this budget the coverage of liabilities—that is, the proportion of liabilities which are funded by assets in the account—was about 49 per cent. This means there will be no change from the coverage achieved in 2012. Estimates for the outyears show that coverage will only increase to 15 per cent in 2013-14 and remain unchanged for the following two years.
I also note that in 2007-08 the coverage of liabilities in the SPA was more than 70 per cent. What we have seen is a dramatic decrease in the proportion of funded liabilities over the past four or five years, and I suggest that it will be a major task to rebuild the coverage of the liabilities, possibly requiring significant blocks of funds from the ACT budget to eliminate liabilities if it is to be fully funded by 2030, if the recovery of the world markets continues to be sluggish.
MS HUNTER (Ginninderra—Parliamentary Leader, ACT Greens) (8.41): I think my views on the SPA and the role it should play are pretty clear. I am very pleased that under the new investment policy there will be development of a proxy voting policy and reporting on all resolutions. I look forward to not having to ask any more questions on notice about how we voted on various resolutions and not having to find out any more of those maybe embarrassing answers, which I am sure neither the Treasurer nor the Treasury officials agree with.
I am, of course, also very pleased that we will no longer be investing in big tobacco, cluster bombs and land mines. I am certain that the decision will, if anything, have a positive impact on the result in next year’s SPA numbers.
MR BARR (Molonglo—Deputy Chief Minister, Treasurer, Minister for Economic Development and Minister for Tourism, Sport and Recreation) (8.42): I thank members for their contributions. I can advise that the government are making prudent provision for funding of our defined benefit superannuation obligations, inherited somewhat from the commonwealth government when public servants transitioned into the ACT public service with self-government.
Making provision for our superannuation in this budget ensures there will be sufficient funds to fund our projected liabilities in the future. Without this prudent provision or our investment strategy the call on future budgets would be considerably greater and lead to significant intergenerational equity issues.
The most recent triennial actuarial review has informed the government’s provisions in this budget. Some of the demographic assumptions have shifted and this is something the government will watch in the future.
These changes include increased take-up of pensions at retirement by PSS members, changes to benefit selection by CSS members, improvement in pensioner mortality
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video