The accuracy of the content is not guaranteed. Please rely only on the authorised document. I welcome the independent report on the long-term costs of the Commonwealth civilian superannuation schemes as at 30 June 1999, which was tabled in Parliament today. Such actuarial reports, prepared every three years, relate to the Commonwealth Superannuation Scheme (CSS) and the Public Sector Superannuation Scheme (PSS). The report shows that the long-term employer cost for the CSS remains at 21.9% and that the new PSS rate is 14.2% of superannuation salary. The unfunded liabilities continue to trend downwards as a percentage of GDP. The report estimates them to be $46 billion, which is 8% of GDP. This report will not affect the Government’s proposal to close the PSS and provide superannuation fund choice to Commonwealth employees. The Government remains committed to the passage of Bills it has before the Senate to implement these new arrangements. Closure of the PSS and the provision of superannuation fund choice will give Commonwealth employees more flexibility to plan for their retirement needs and greater choice and control over their superannuation savings. The funding of future employer contributions for new employees, and those existing employees who choose to leave the PSS or CSS, will also sensibly address, over time, the Commonwealth’s $46 billion unfunded liabilities. Compulsory membership of a single superannuation scheme is no longer fair or equitable yet Commonwealth employees are tied to the PSS. Closure of the PSS and the provision of superannuation fund choice to Commonwealth employees will be implemented fairly. Existing CSS and PSS members will be able to stay in their scheme without change to their existing entitlements. The change in the PSS rate will not affect the Government’s proposed new superannuation arrangements. Under those arrangements employees and employers will be able to negotiate the mix of salary and superannuation. Canberra
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