Costa Leaves NSW State Pension Liabilities Under Cloud 
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Thursday 28 June 2007 Shadow Minister for Finance Mike Baird today called on the Iemma Government to release the latest Triennial Review into the State Super scheme after questionable assumptions on unfunded superannuation liabilities left the retirement benefits of public servants under a cloud. "The 2007/08 Budget confirms the Iemma Government has now understated its unfunded superannuation liabilities. That means we may well reach a point in the future where the government cannot pay the super of a nurse who has worked for over 40 years," Mr Baird said. “Michael Costa has used assumptions that reduce the amount of the State’s superannuation liabilities which finance industry sources have questioned, including: 1. That superannuation investment return rising to 7.7%; 2. The discount rate rising to 7.3%, and; 3. Mortality rates increasing while indicators point to an ageing population and increased life expectancy. "Morris Iemma and Michael Costa’s treatment of State Superannuation looks suspiciously like too-cute financial engineering in aid of a headline driven Budget. "The State Government had allocated an average of $1.3 billion towards unfunded superannuation every year for the last four years, but this year Morris Iemma and Michael Costa appear to have taken this away to removed a deficit from the headlines. "Nurses, police officers, fire-fighters, teachers and train drivers deserve to know why their superannuation benefits have been used to balance the budget. "The Iemma Government must release the Triennial Review which supposedly details how unfunded superannuation liabilities will magically disappear by 2030. “If the Government has nothing to hide then release the report including the range of all assumptions and let the investment community comment upon its decision. Otherwise we have to wonder whether we are starting to see the first sign of Enron style financing in NSW.” Add to:          Write Comment
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