Volume Five 2012 focusing on superannuation, compensation and housing
Superannuation investment returns fell and liabilities are significantly higher
“The NSW Government’s defined benefit superannuation funds have had positive returns for the last three years. However, the returns fell significantly in 2011-12,” said Mr Achterstraat. “Global economic conditions led to substantial volatility and uncertainty in markets creating challenges for superannuation funds’ trustees,” he added.
Prior to the global financial crisis investment returns for growth investment strategies were up to 18 per cent per annum in 2006-07. They were negative 17 per cent in 2008-09. 2011-12 returns were less than one per cent.
Unfunded superannuation liabilities of NSW public sector agencies increased significantly to $50.9 billion at 30 June 2012 up from $34 billion at the same time last year, primarily due to the fall in the bond rate used to calculate these liabilities.
It costs an average of $2.7 million for the lifetime care of each person under the Government’s Lifetime Care and Support Scheme. The Scheme provides lifelong treatment, rehabilitation and attendant care for people severely injured in motor vehicle accidents in New South Wales, regardless of who was at fault.
“A third of Scheme participants are between 16 and 25 years old and 12 per cent are children that will require lifelong treatment and care. We need to find new ways to keep young people safe. Too many of them are hurt in motor vehicle accidents,” said Mr Achterstraat.
“Motorcyclists are significantly over-represented in the Scheme. Almost one in four Scheme participants sustained their injury in a motorcycle accident. We all need to be careful and aware of motorcyclists when we use the roads.” he added.
At the end of June 2012 there were 660 people being cared for under the Scheme, up from 531 in 2011.
The liability for people severely injured in motor vehicle accidents in New South Wales is currently $1.8 billion and is estimated to increase to $4.3 billion by 2017.
The Corporation built 5,993 dwellings under the Australian Government’s Nation Building Economic Stimulus Plan, above its target of 5974. The Corporation’s land and buildings now value close to $32 billion.
Contact Barry Underwood (02) 9275 7220; 0403 073 664 or email firstname.lastname@example.org