Universities in NSW have many current and former employees who are longstanding members of the State Super schemes.
The Trustee is aware that some members have been concerned that the universities need to make additional employer contributions to cover their State Super liabilities. The actuary for the State Super schemes has estimated that, without additional contributions, the separate university employer reserves in the fund are likely to become exhausted over the period from 2015 to 2022.
The Trustee has written to each university to obtain agreement to a funding plan for additional employer contributions from 2013-14 onwards. The funding plans are intended to ensure that each university's reserves in the fund will remain sufficient to meet the entire cost of the State Super benefits payable.
From a practical perspective, the Trustee is aware that the ability of the universities to agree to a funding plan and budget for the additional contributions is substantially dependent on the outcome of negotiations currently underway between the NSW and Commonwealth governments. The purpose of the negotiations is to determine each government's share of the superannuation funding required by the universities.
Both governments have indicated that they are seeking to settle the funding issue as soon as possible.