The actuaries to the Commonwealth’s defined benefit superannuation schemes have completed the 2023 Long Term Cost Reports (LTCRs). The reports estimate the long-term cost of providing superannuation benefits to members and monitor progress of the future financial position for the schemes based on updated data and trends. LTCRs for each of the Australian Government civilian defined benefit superannuation schemes are prepared by scheme actuaries every three years.
The 2023 Public Sector Superannuation Scheme (PSS) and the Commonwealth Superannuation Scheme (CSS) LTCR identifies that the unfunded liability for these schemes will continue to grow over the medium-term into the future, peaking at $190.5 billion in 2033-34 before declining to $62.4 billion by 2060. The liability represents the present value of member superannuation entitlements in respect of service rendered, less the value of assets held by the schemes.
The projected decline in liability by 2060 is largely due to contributors leaving the workforce, and deferred and preserved members commencing a pension or receiving a lump sum benefit. The CSS closed to new members from 1 July 1990, and the PSS was closed to new members from 1 July 2005.
