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:

Given that on page 42 of the Matthews Review report (Review of pension indexation arrangements in Australian Government civilian and military superannuation schemes, by Mr Trevor Matthews, dated December 2008), the department is quoted as stating that there 'are no identifiable assets available to offset an

increase to the unfunded liability' and that the 'Future Fund currently only has sufficient assets to meet superannuation liabilities at and beyond 2020 arising from current indexation arrangements':

(1) Given the investment return of the Future Fund over the past financial year (i.e. 10.7 per cent), is it feasible that the annual cash cost of improved indexation arrangements could be reasonably met (after prospective legislative amendment) by accessing excess earnings from the Future Fund without creating serious detriment to the Fund's original purpose.

(2) Has the department undertaken any detailed analysis of this proposal including potential 'clawbacks' of age pension and taxation receipts.

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) There are no excess earnings from the Future Fund. To the end of 2010 the Future Fund’s earnings have been less than the long-term benchmark return set out in the Investment Mandate.

(2) The updated estimates of the cost of alternative indexation arrangements for Commonwealth superannuation pensions that are available on the Department of Finance and Deregulation website sets out updated information on this matter.