2.10 Superannuation
Some changes in responsibility for superannuation mean that revised funding arrangements for superannuation will be put in place in 1997-98. These changes will reduce the exposure of hospitals to risk regarding superannuation liabilities. Government has accepted that responsibility for funding and accounting for unfunded superannuation liabilities should be assumed by the Department of Treasury and Finance (DOTF). Funding for the pensioner component of such unfunded liabilities was withdrawn during 1996-97 and payments made to cover the unfunded liabilities for existing members in the defined benefits scheme will be withdrawn in 1997-98 ($11.4 million). These have been withdrawn from hospitals on a uniform basis. The Hospital Superannuation Board has notified hospitals that the transfer of financing of the unfunded superannuation liabilities to DOTF will reduce hospital employer contributions from 7 per cent of wages to 4 per cent of wages from 1 July 1997. Allocations previously made from Treasury to the Department and onto hospitals to pay for such premiums will no longer be made. These changes are neutral in their impact on hospitals and Networks.
