Financial Standard Comments - NSW universities face $4.3bn in super liabilities The New South Wales auditor-general has cited a "critical need" for NSW universities to negotiate funding arrangements for superannuation liabilities with the Australian Government, after an audit of the state's 10 universities. https://www.financialstandard.com.au/feed/latest?story=12952142 Mon, 04 Jun 2012 13:45:15 +1000 Mon, 04 Jun 2012 13:45:15 +1000 en-AU Copyright 2026 Financial Standard 5 Comment by greg () If this scenario were played out in any other arena, the trustees would be liable, and the schemes would be actuarially non complying.
The LASB is just the same, and ratepayers all around the nation are paying billions due to incompetent trustees to top up member defined benefits.
So why does any government feel they have the right to make tax payers & rate payers pay even more because of their trustee failings?
This will make the carbon tax look like the flea on the elephant.
Sue the trustees and/or convert these funds to TAP's

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]]> greg () Mon, 04 Jun 2012 13:45:15 +1000 Comment by Lincoln () It would appear that whilst they may produce the "best and the brightest", perhaps the STC or the Universities haven't retained any of them for financial oversight? Surely there was some sort of alarm bell that the money was running out? Was a $3b black hole not enough?
Extremely poor fiscal management by the trustees and employers. Will they or should they face the music for this mess? If it were a retail fund and the private sector there would be calls for a parliamentary inquiry, new legislation and fingers pointed.

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]]> Lincoln () Mon, 04 Jun 2012 14:23:57 +1000 Comment by Is It fair () If you asked any trustee of an industry or govt super fund to calculate and interpret the underlying securities in their members portfolio of investments they would have no idea. The response would be ask my asset consultant, ask my investment manager. It is just pass the parcel. One day some action will be required to call the trustee accountable for their actions, lack of decision and also their responsibility to the member. Nice to see if they could get up in front of their members and be asked a random investment question and ask them to Please Explain - no staged pre formatted answers.
I feel sorry for some of the members of these funds as they do not have many options and they do put their trust in the trustees to make informed decisions

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]]> Is It fair () Mon, 04 Jun 2012 15:05:07 +1000