As you will be aware from previous communications, the superannuation liabilities of various NSW universities have been the subject of ongoing review. SAS Trustee Corporation (STC) has been working assiduously with the New South Wales (NSW) and Commonwealth Governments to develop a framework that is better able to manage the funding requirements so that all members' lump sum and pension benefits are paid.
We have been advised that a Memorandum of Understanding (MoU), commencing December 2014, has been signed by the NSW and Commonwealth Governments. The MoU outlines the intention of the two governments to establish a protocol to fund university superannuation benefits until the earlier of 30 June 2084 or when the last beneficiary is paid. The MoU also informs the Trustee of the understanding between the Governments to fund member lump sum and pension benefits for the various NSW Universities as they fall due from the Pooled Fund.
The Trustee believes the signing of the MoU, the ongoing pay-as-you-go funding arrangement, and the requirement for 12 months' reserves at all times, facilitates a solution to address the particular funding arrangements relating to the NSW Universities. The Trustee will continue to monitor this matter.
If you have any further questions please contact Customer Service.
Note: Funding arrangements for superannuation liabilities associated with the Australian Defence Force Academy are being considered separately by the relevant parties. This MoU does not incorporate any provisions for the funding of Australian Defence Force Academy superannuation liabilities. We will advise members further as information becomes available.