An actuarial review is undertaken of each of the State's defined benefit superannuation schemes as at 30 June each year. Actuarial estimates are based on a wide range of economic, financial and demographic assumptions. Over time, actual outcomes in relation to salary growth, investment returns, the number of resignations and retirements, mortality, morbidity, inflation and the preference for lump sum benefits over pensions will vary from what has been assumed by the State Actuary. To the extend that these variations occur, there will be changes in both the cash flow profile for the Government and the period of time over which the unfunded liability will be eliminated.

For this reason, the State Actuary is requested to annually review both cash flow and unfunded liability estimates. These updates of the overall funding position form the basis on which future inflows into the SPA are determined by the Government. In undertaking this task, the Government has regard to revised outlay estimates and the Fiscal Strategy target of eliminating the General Government Sector’s unfunded superannuation liability by 30 June 2018.

The General Government Sector's unfunded superannuation liability is an estimate of its 'indebtedness' with respect to past service liabilities arising from the current and former members of the various public sector defined benefit superannuation schemes. The Government has acted to reduce this contingent liability by closing the defined benefit schemes to new employees and substantially increasing its funding effort to the Superannuation Provision Account.

Since 1 July 2002, there has been no difference in the rate of employer superannuation support provided to all categories of new public sector employees, whether permanent or fixed term employees, parliamentarians or judges. That is, all new employees, regardless of their employment status, have received the same level of employer superannuation support (nine per cent of salary) since that date.

The aggregate unfunded superannuation liability for the General Government Sector is outlined in Table 17.

Table 17 Aggregate Net Unfunded Superannuation Liability – General Government Sector

As at:	RBF	PSF	PRBF	Judges	Total	Percentage change from previous year
	$m	$m	$m	$m	$m
30 June 1995	1 207	14	…	10	1 231	n.a.
30 June 1996 1	1 468	14	…	10	1 492	21.2
30 June 1997 1	1 291	14	…	10	1 315	(11.9)
30 June 1998	1 336	13	2	18	1 368	4.1
30 June 1999	1 369	13	…	19	1 401	2.4
30 June 2000	1 256	11	1	21	1 288	(8.0)
30 June 2001	1 288	12	…	20	1 321	2.5
30 June 2002	1 299	12	2	21	1 334	1.0