THOUSANDS of public servants would have their superannuation cut under a proposal by long-serving Western Tiers Upper House MP Greg Hall.
Mr Hall is writing to all political parties calling on them to make changes to the generous scheme, which he says the state can no longer afford.
The call follows concerns raised by Tasmanian Auditor General Mike Blake showing the cost of the Defined Benefits Scheme has blown out to $6 billion and the State Government no longer has the money in the bank to help pay for it.
A $1.3 billion bank fund that had been established by previous governments to fund the super liability has been used by the State Government to help prop up the state’s bottom line in recent years.
The scheme, which closed in 1999, covers an estimated 16,000 public servants – with about half receiving a pension and the other half still in the workforce.
Mr Hall wants those still in the workforce transferred to the current, less generous superannuation scheme.
He told the Mercury it was time to review the “gold plated scheme”.
“It’s time the Tasmanian Government pulled their head out of the sand ... and put measures in place to slow its growth,” Mr Hall said.
“In my view, the Defined Benefits Scheme should be axed and everyone put on a level playing field – the accumulation scheme that has been on operation for the last 15 years.”
Under the generous Defined Benefits Scheme, public servants continue to receive a pension of about two thirds of the average of their last three years’ salary.
Last year the State Government paid about $314 million in superannuation benefits, with forecasts suggesting the figure could rise to more than $500 million in 15 to 20 years.
Yesterday both major parties were distancing themselves from any change.
Opposition Treasury spokesman Peter Gutwein said a Liberal government would not change the scheme.
A Government spokesman said the State Government “is, has and will continue to meet our obligations for pensions as they fall due”.
Community and Public Sector Union boss Tom Lynch said Mr Hall’s proposition was ridiculous.
“The situation we have is that public sector workers took employment under a defined scheme that they paid into,” Mr Lynch said. “The other side (government) has not funded their side of the scheme.”
Tasmanian Association of State Superannuants president Murray Harper said members were calling for an increase in the pension.
“Our members have paid their super contribution and are genuinely struggling,” he said.
