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Legislative Assembly for the ACT: 1999 Week 1 Hansard (18 February) . . Page.. 370 ..

Superannuation Commitments - Unfunded

(Question No. 74)

Mr Quinlan asked the Treasurer, upon notice, on 8 December 1998:

According to Donald Duval, an Australian Government Actuary, in a publication titled `The Financing and Costing of Government Superannuation Schemes', there are two methods of determining how much of a liability has been accrued by an unfunded superannuation scheme. Similarly he provides some insight on the value of actuarial assumptions.

(1) Does the ACT Government Actuary (consultant or internal) use the Projected Unit Cost method or the Entry Age Normal method for calculating the liability.

(2) Can you provide a comparative series of data, in tabular form, that projects the liabilities under both methods in (1).

(3) What are the:

(a) assumptions in the model for the ACT unfunded superannuation for (i) population, (ii) age and (iii) employment structure; and

(b) economic assumptions for (i) interest, (ii) CPI, (iii) wage growth, (iv) productivity and (v) associated variables.

(4) From the Towers-Perrin reports concerning the projected salary costs into the future:

(a) what are the assumptions used to project those costs; and

(b) what are the actual values associated with those projections (ie. dollar costs).

(5) Have you:

(a) modelled State Final Demand under the same assumptions as the actuarial projections for superannuation,

(b) are the year by year results of modelling under those assumptions available; and

(c) if the data does not exist yet, can you undertake to provide it as and when it is available.

Ms Carnell: The answer to the member's question is as follows:

(1) The reports produced by Towers Perrin in relation to the ACT Government's superannuation liabilities use the Projected Unit Credit (PUC) method. This method provides for the apportionment of accruing liabilities over service on a

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