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Monday, 20 October 1997
Page: 9345

(Question No. 2314)


Mr Kelvin Thomson asked the Prime Minister, upon notice, on 1 October 1997:

(1) Did he guarantee prior to the 1996 election that his Government would not cut and destroy public sector superannuation schemes.

(2) Is the Commonwealth Public Service Superannuation Scheme to be abolished from 1 July 1998; if so, how does this reconcile with his pre-election guarantee.


Mr Howard —The answer to the honourable member's question is as follows:

(1) Yes.

(2) The arrangements announced by the Minister for Finance on 23 September are consistent with my pre-election guarantee.

The government will close the existing Public Sector Superannuation Scheme (PSS) to new members from 1 July 1998. However, remuneration packages available to new and existing employees will not be adversely affected. New employees will be able to choose the fund to which their employer contributions are paid, other than the PSS or the Commonwealth Superannuation Scheme (CSS). From 1 July 2000 members of the PSS and the CSS will be able to choose to have contributions paid to another fund if they request it. Funding provided to Commonwealth employers will be maintained at the existing cost levels of the current schemes.