University superannuation liabilities

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News 12 July 2013

The most recent actuarial review of the State Super schemes dated 4 December 2012 has confirmed that, without additional contributions, the employer reserves in the State Super fund for each university are likely to become exhausted over the period from 2014-15 to 2021-22. A copy of the 2012 Actuarial Review (Vol 1 & Vol 2) can be found on the State Super website.

The Trustee has written to each university to obtain agreement to a funding plan for additional employer contributions. The universities, however, have not been in a position to provide the funding plans due to ongoing negotiations between the Commonwealth and NSW governments over each government's share of the superannuation funding required from the universities.

The NSW Government advised in its Budget Papers released on 18 June 2013 that the negotiations over university superannuation are at an advanced stage. The budget papers indicated that New South Wales is prepared to fund a share that reflects a fair estimate of the State's funding responsibilities for university superannuation and that, together with the Commonwealth funding, this will ensure that the university employer reserves are not depleted.

The Trustee has received an assurance from the NSW and Commonwealth governments that they will fund any shortfall of member benefits in 2013-14 pending a permanent resolution. The Trustee is closely monitoring this issue and will inform members when a funding agreement is finalised.