In today’s State Budget, the Queensland Government has confirmed its intention to use some funds it holds in reserve to meet its Defined Benefit liabilities to reduce debt and fund infrastructure projects.
QSuper CEO Michael Pennisi said:
“It’s important to note that no money is being taken out of QSuper.
“The repatriation of funds announced in the Queensland Budget are funds that belong to the Queensland Government. This money sits in a voluntary reserve which was set up and supported by successive Governments to meet the Government’s Defined Benefit liabilities. “Queensland is the only State that has set aside reserves such as this, and it currently has more funds than is needed to meet its liabilities.
“QSuper manages $65 billion in funds. This is our members’ money, managed by the QSuper Board and it is not accessible by any other party, including the Queensland Government.
“QSuper solely exists to provide our members with great products and services for their retirement. While it is the fund for the Queensland public sector and spouses, it is not part of the Queensland Government. It is regulated by national laws like all other Australian industry super funds.
“The decision to use some of the surplus in the reserve is a decision of the Queensland Government.
“It does not and will not affect our members’ entitlements, as they are protected by State and Federal laws.”
Background - Defined Benefit Scheme
QSuper has more than 550,000 members, and about 48,000 of these, or less than 10 per cent, are in the Defined Benefit scheme.
The Defined Benefit scheme provides a benefit to members based on years of service and final salary.
Queensland was the last state to close its Defined Benefit Scheme to new members in 2008.
Defined Benefit accounts are prescribed under legislation. The Queensland Government is required by law to pay all entitlements to Defined Benefit members at the time they retire.
QSuper is Queensland’s largest superannuation fund and manages in excess of $65 billion in funds for more than 550,000 members and was awarded SuperRatings Fund of the Year 2016.1
Geraldine Mitchell / QSuper / 0418 429 866 / email@example.com
1 SuperRatings does not issue, sell, guarantee or underwrite this product. Go to www.superratings.com.au for details of its ratings criteria. Past performance is not a reliable indicator of future performance.