The Public Sector Superannuation Scheme (PSS) and Commonwealth Superannuation Scheme (CSS) are reviewed every three years by an independent actuarial firm to determine the schemes' cost. The review examines the size of the schemes' unfunded liabilities, the timing of the projected payments (to be made over a period of decades), and the notional employer contribution rates.
The results of the most recent review are outlined in the PSS and CSS Long Term Cost Report (LTCR) 2017, which is based on data as at 30 June 2017.
This latest report outlines an increase to the PSS and CSS unfunded liability to $137.8 billion as at 30 June 2017.This increase is primarily due to the decrease in the discount rate to value the liability amount. The current rate is 5 per cent, reflecting the actuaries’ view that long-term borrowing is lower than the previously used 6%.