Membership of public sector superannuation schemes

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One measure of the effectiveness of the Government’s strategy to better manage and eliminate its unfunded superannuation liability is the percentage of superannuation arrangements that are fully funded relative to its overall superannuation arrangements.

As at 30 June 1998, Treasury estimated that only three per cent of public sector superannuation arrangements were fully funded. Following the establishment of the RBF Tasmanian Accumulation Scheme in April 2000, this figure increased to 55 per cent of overall superannuation arrangements. As at 31 March 2003, the percentage of fully funded superannuation arrangements had increased to almost 64 per cent.

As defined benefit scheme members retire or resign, they are replaced by employees who become members of the Tasmanian Accumulation Scheme or a complying superannuation scheme of their choice. Unlike the unfunded defined benefit schemes, these arrangements are fully funded and are also fully portable. The percentage of employees in fully funded arrangements will therefore continue to increase over time.

Table 18 outlines the most recent information available to Treasury about the number of current members and scheme pensioners (superannuants) by the superannuation arrangement specified. These figures will most likely differ from the 30 June figures shown in the earlier sections.

In some cases, a person may be a member of more than one RBF scheme, or may have more than one account with that scheme. In TAS, the incidence of a member having more than one account has fallen as a result of the steps taken by the RBF Board to consolidate accounts following the introduction of full employer funding in April 2000.

Table 18 Membership of Public Sector Superannuation Arrangements:

			Superannuants
Scheme established under the provisions of:	Status of scheme or sub-scheme	Active members	Primary	Reversionary
Retirement Benefits Act 1993
Defined benefit scheme ^{1, 2}	closed (1999)	14 793	5 452	1 685
Amalgamated scheme ^{1, 2, 3}	closed (1971)	12	n.a.	n.a.
Police Provident Fund ^{1, 2, 4, 6}	closed (1963)	1	n.a.	n.a.
1973 PSF scheme 1	closed (1985/1999) ⁹	4	20	10
1985 PRBF scheme ^{1, 5, 7}	closed (1999)	19	n.a.	n.a.
Total RBF defined benefit schemes		14 829	5 472	1 695

Public Sector Superannuation Reform Act 1999
Tasmanian Accumulation Scheme ^{1, 2, 4, 6, 7}	open	23 341	n.a.	n.a.
Other complying superannuation schemes ^{7, 10}	open	2 398	n.a.	n.a.

Judges' Contributory Pensions Act 1968 ^{1 8}	closed (1999)	5	6	4
Solicitor-General Act 1983 ^{1, 8}	closed (1999)	1	…	1
Governor of Tasmania Act 1982 ^{1, 8}	closed (1999)	1	1	…

Total number of active members and superannuants ¹¹		40 830	5 479	1 700
Number of active members in fully funded schemes		26 013
Percentage of active members in fully funded schemes		63.7%

Notes:

n.a	not applicable.
1.	For the purpose of the Commonwealth's Superannuation Industry (Supervision) Act 1993 (SIS Act), these schemes are classified as Exempt Public Sector Superannuation Schemes (see Schedule 1AA of the Superannuation Industry (Supervision) Regulations 1994). These schemes are therefore not subject to the SIS Act, although Tasmania is a signatory, along with the other states, to a Heads of Government Agreement, which requires compliance with the principles of the SIS Act.
2.	Numbers for active members and superannuants (primary, reversionary and children) for the RBF schemes are as at 31 March 2003, as advised by the RBF Board.
3.	Pension beneficiaries are included in the figures for the RBF defined benefit scheme.
4.	The benefit is expressed as a lump sum, but may be converted by certain members to a national CPI-indexed pension based on actuarially determined factors. In such cases, superannuants are included in the figures for the RBF defined benefit scheme.
5.	The benefit payable under 1985 PRBF scheme is provided as a lump sum, although an allocated pension may be purchased from the RBF Board (which is available as an option to all active members).
6.	All schemes other than the Tasmanian Accumulation Scheme (TAS) and the Police Provident Fund (PPF) are defined benefit schemes. The level of employer support in TAS is nine per cent of salary, whereas in the closed PPF scheme it is 10.5 per cent of salary.
7.	All schemes are unfunded in respect of employer contributions and are untaxed, except the Parliamentary Retiring Benefits Fund (PRBF), formerly established under the provisions of the Parliamentary Retiring Benefits Act 1985 (now repealed) and continued under Part 4 of the Retirement Benefits (Parliamentary Superannuation) Regulations 2002, the Tasmanian Accumulation Scheme and the other complying superannuation schemes.
8.	These three schemes are constitutionally protected (see Schedule 14 of the Commonwealth's Income Tax Regulations 1936). This has relevance in relation to the Commonwealth Government’s surcharge legislation.
9.	The 1973 PSF scheme was closed in 1985 to all new parliamentary members, but until 1999 former members retained the right to rejoin the scheme upon re-election to Parliament. The scheme was fully closed in 1999.
10.	As obtained from Treasury’s 30 June 2002 Whole-of-Government Financial Survey.
11.	For the purposes of this table, active members include current public servants, parliamentarians, judges, the Governor and the Solicitor-General who are members of the relevant schemes. The number of superannuants is not included.