Gary Humphries (ACT, Liberal Party, Shadow Parliamentary Secretary for Defence Materiel) Share this | Link to this | Hansard source

asked the Minister for Finance and Deregulation, upon notice, on 16 November 2010:

(1) Given the impact of previous assumptions on the financial wellbeing of Commonwealth and military retirees, what process is used to peer review assumptions.

(2) Are the main retiree representative organisations consulted on the use and change of underlying assumptions.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

The answer to the honourable senator's question is as follows:

(1) Actuarial assumptions have no bearing on the benefits that are payable to members.

The value of benefits payable to members of the Commonwealth civilian and military defined benefit superannuation schemes, including pensioners, are calculated based on the legislation governing the relevant scheme.

Actuarial assumptions are made in order to value the long-term cost of the Australian Government defined benefit schemes that will be charged to the Consolidated Revenue Fund and paid by the Commonwealth.

Mercer (Australia) Pty Ltd, the actuary for the civilian schemes, and the Australian Government Actuary, the actuary for the defence superannuation schemes undertake peer review of all their advice.

(2) No.