Shorten warning on unfunded super liabilities
The Minister for Financial Services, Bill Shorten, has signaled that both the State Governments and local government bodies are going to have to accept greater responsibility for unfunded liabilities associated with defined benefit superannuation schemes.
The minister's attitude was revealed during a visit to regional Victoria yesterday where he was questioned on the issue of concerns around the defined benefits elements of industry superannuation scheme Vision Super.
"I think there is a challenge here for local government in terms of how they fund their contributions to superannuation," he said.
"I think there is also a policy piece: does the State Government want to support local government or not?"
Shorten questioned whether a number of local government councils had appropriately met their obligations with respect to funding defined benefit super schemes.
"In the case of some parts of local government, they created their superannuation schemes even before there was accumulation superannuation. In other words, people would be given a certain amount when they retire," he said.
"In the case of local government, what we've seen is councils agreeing to wage increases for people who are eligible for a defined benefit pension when they retire. I'm not sure that the councils have kept pace with putting money aside for the pensions for when people retire."
Recommended for you
The winners have been announced for the 2025 Super Fund of the Year Awards, held in Melbourne on 26 November by Money Management's sister brand Super Review.
Data and technology provider Novigi has acquired Iress’ superannuation consulting and managed services business from Apex Group.
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
