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Monday, 2 April 2001
Page: 26225


Mr Murphy asked the Minister for Finance and Administration, upon notice, on 28 February 2001:

(1) Does the unfunded component of the Commonwealth Superannuation Scheme and the Public Sector Superannuation Schemes (CSS/PSS) trust funds equal approximately $46 billion; if not, what sum does it represent.

(2) In relation to the unfunded component of the CSS/PSS trust funds, is he able to say (a) where the unfunded component is held, (b) what sum per annum is placed in the CSS/PSS trust fund, (c) what is the interest on the monies placed in this fund each year, (d) is this money re-invested, (e) what sum is currently held in the funds, (f) what is the interest on the money currently held in the funds and (g) are the funds placed per quarter, half-yearly or annually.

(3) What are the names of the trustees of the CSS/PSS trust funds.

(4) Can he briefly describe the responsibilities of the trustees of the CSS/PSS trust funds.


Mr Fahey (Minister for Finance and Administration) —The answer to the honourable member's question is as follows

(1) The unfunded liability for both schemes was estimated at $46 billion as at 30 June 1999 in the Long Term Cost Report for the Commonwealth Superannuation Scheme (CSS) and the Public Sector Superannuation Scheme (PSS) that was published in June 2000.

(2) Unfunded liability represents superannuation benefits accrued by members for which the Commonwealth holds no assets. The unfunded component of CSS and PSS benefits, which the $46 billion unfunded liability represents, will be paid from the Consolidated Revenue Fund as those benefits become payable.

(3) The trustees of the CSS and PSS are the CSS and PSS Boards.The members of the PSS Board are currently Mr Peter Reynolds, Ms Cathy Manolios, Mr John Flitcroft, Ms Louise McBride and Ms Winsome Hall. The members of the CSS Board comprise the members of the PSS Board plus Ms Joy Palmer and Mr Richard Balderstone. The positions on the Boards are all part-time positions.

(4) The functions of the CSS Board are prescribed by section 27C of the Superannuation Act 1976 (the 1976 Act).

The functions of the PSS Board are prescribed by section 22 of the Superannuation Act 1990, (the 1990 Act) which provides that the functions and powers of the Board are set out in the PSS Trust Deed (clause 3.1).