POWERED BY MOMENTUM MEDIA
Unfunded liabilities stretch out 39 years
The Federal Government will still be carrying unfunded superannuation liabilities resulting from its now-closed CSS and PSS schemes in 39 years time, according to an investigation conducted for the Commonwealth by Mercer Human Resources Consulting.
The actuarial investigation covered CSS/PSS data to June 30, 2005, and found that the accrued unfunded liability being carried by the Commonwealth stood at $64.4 billion, or 7.8 per cent of gross domestic product (GDP), at June 30, last year.
It said this compared with an unfunded liability of $48.4 billion as at June 30, 2002, which at that time represented 8.4 per cent of GDP.
It said the total unfunded liability was expected to reduce as a percentage of projected GDP to 1.3 per cent at June 30, 2045, mainly as a result of the closure of the PSS on July 1, last year.
AUTHOR
Mike Taylor
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