Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Slipper puts his foot in it.

Download WordDownload Word



Kelvin Thomson MP

Shadow Assistant Treasurer

Member for Wills


3 December 1998




“The Parliamentary Secretary to the Minister for Finance, Mr Peter Slipper, has let the cat out of the bag by revealing in Parliament that the Government’s superannuation choice of funds bill will force defined benefit funds to close.


“In a speech to Parliament on Tuesday night defending the Government’s decision to close the Public Sector Superannuation Scheme, Mr Slipper said:


“the provision of choice does not sit well with an open defined benefits superannuation scheme. Under choice, if members could transfer in and out of a defined benefits scheme the members would be able to play arbitrage against the fund, which has the potential of significantly increasing the cost of the scheme.”


“Mr Slipper has revealed the Government’s choice of fund legislation will effectively force the closure of all defined benefit superannuation funds.


According to the APRA’s June Bulletin, there are 1.124 million defined benefit schemes with 2.86 million fund members and holding $131,685 million in assets.


“Shadow Assistant Treasurer, Kelvin Thomson, said Mr Slipper’s slip was one more nail in the coffin of the choice of fund bill.


“Already we’ve seen the major industry bodies calling on the Government to review its choice of fund bill in favour of investment choice. Once the members of defined benefit funds realise what’s in store for them, opposition to the bill will strengthen further.”


Further information: Kelvin Thomson 0419 594 882 or Tim Fawcett (02) 6277 4045