Fears about the State's liability for superannuation expressed by Opposition Leader Barry MacKinnon were hypocritical, Minister Assisting the Treasurer Geoff Gallop said today.
Dr Gallop was referring to Mr MacKinnon's remarks about the State Government's current liability for superannuation of $4.1 billion which was provided in published analytical information prepared by Treasury.
"It is incredible that criticism of this kind is being levelled by an Opposition which in all its years in office did nothing to reduce the State's liability for superannuation," Dr Gallop said.
"Under the old pension scheme inherited by the Labor Government, the State's liability would have grown to around $7 billion by 1988 and in excess of $8.5 billion at June 30, 1990."
Dr Gallop said estimates showed that at June 30, 1985, under the old pension scheme, the State's liability stood at $4.9 billion. With the Labor Government's introduction of the new lump sum scheme, the liability fell to $3.7 billion in 1988. As at June 30, 1991 the figure was $4.1 billion.
"There is no cause for the alarm expressed by Mr MacKinnon about the current liability," Dr Gallop said.
"The size of the liability reflects the traditional approach of successive State Governments in funding their superannuation obligations.
"In common with most major public sector schemes throughout Australia, those in Western Australia are, by tradition, largely unfunded.
"Put simply, this means that employer contributions are not made concurrently with those of employees, but are paid when the benefits emerge."
Dr Gallop said that Mr MacKinnon's call for yearly actuarial assessments of the State's liability for superannuation was also empty. The assessed liability was already provided on a yearly basis in information prepared by Treasury in support of the Treasurer's annual statements.
