{"id":"nsw:act-2002-060","name":"General Government Liability Management Fund Act 2002","slug":"general-government-liability-management-fund-act-2002","collection":"act","jurisdiction":"nsw","status":"in_force","isInForce":true,"actNumber":"60 of 2002","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":104998,"registerId":"nsw-act-2002-060-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"# Part 1 Preliminary\n\nPart 1 Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name of Act","content":"#### 1 Name of Act\n\n1 Name of Act\n\n> This Act is the [General Government Liability Management Fund Act 2002](/view/html/inforce/current/act-2002-060).","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n2 Commencement\n\n> This Act commences on the date of assent.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Definitions","content":"#### 3 Definitions\n\n3 Definitions\n\n> > (1) In this Act—\n> > \n> > agency, in relation to a superannuation fund that is part of the STC Fund, means an employer whose employees, or some of whose employees, are members of the superannuation fund.\n> > \n> > exercise a function includes perform a duty.\n> > \n> > function includes power, authority or duty.\n> > \n> > Liability Management Fund or Fund means the General Government Liability Management Fund established under section 4.\n> > \n> > Management Committee means the Management Committee constituted by section 10.\n> > \n> > Ministerial Corporation means the Liability Management Ministerial Corporation constituted by section 7.\n> > \n> > Secretary means the person for the time being holding or acting in the office of Secretary of the Treasury.\n> > \n> > STC means the SAS Trustee Corporation continued under the [Superannuation Administration Act 1996](/view/html/inforce/current/act-1996-039).\n> > \n> > STC Fund means the amalgamated superannuation fund comprising the funds established or constituted under any of the following Acts—\n> > \n> > > (a) [Police Regulation (Superannuation) Act 1906](/view/html/inforce/current/act-1906-028),\n> > \n> > > (b) [Superannuation Act 1916](/view/html/inforce/current/act-1916-028),\n> > \n> > > (c) [Local Government and Other Authorities (Superannuation) Act 1927](/view/html/inforce/current/act-1927-035),\n> > \n> > > (d) [Transport Employees Retirement Benefits Act 1967](/view/html/inforce/current/act-1967-096),\n> > \n> > > (e) [New South Wales Retirement Benefits Act 1972](/view/html/inforce/current/act-1972-070),\n> > \n> > > (f) [Public Authorities Superannuation Act 1985](/view/html/inforce/current/act-1985-041),\n> > \n> > > (g) [State Public Service Superannuation Act 1985](/view/html/inforce/current/act-1985-045),\n> > \n> > > (h) [State Authorities Superannuation Act 1987](/view/html/inforce/current/act-1987-211),\n> > \n> > > (i) [State Authorities Non-contributory Superannuation Act 1987](/view/html/inforce/current/act-1987-212).\n> > \n> > STC scheme means a superannuation scheme established under any of the Acts that established or constituted the superannuation funds that are part of the STC Fund.\n> > \n> > Treasury Corporation means the New South Wales Treasury Corporation constituted by the [Treasury Corporation Act 1983](/view/html/inforce/current/act-1983-075).\n> \n> > (2) Notes included in this Act do not form part of this Act.\n> \n> **s 3:** Am 2022 No 29, Sch 1.1\\[1\\].","sortOrder":3},{"sectionNumber":"Part 2","sectionType":"part","heading":"Government Liability Management Fund","content":"# Part 2 Government Liability Management Fund\n\nPart 2 Government Liability Management Fund","sortOrder":4},{"sectionNumber":"4","sectionType":"section","heading":"Establishment of Fund","content":"#### 4 Establishment of Fund\n\n4 Establishment of Fund\n\n> There is established by this section a General Government Liability Management Fund in the Special Deposits Account in the Treasury.","sortOrder":5},{"sectionNumber":"5","sectionType":"section","heading":"Payments into the Fund","content":"#### 5 Payments into the Fund\n\n5 Payments into the Fund\n\n> The following is to be paid into the Liability Management Fund—\n> \n> > (a) money transferred to the Fund by the Crown,\n> \n> > (b) the interest and any other amounts from time to time accruing from the investments of the Fund,\n> \n> > (c) other money required or permitted to be paid into the Fund by or under this or any other Act.\n> \n> **s 5:** Am 2022 No 29, Sch 1.1\\[2\\].","sortOrder":6},{"sectionNumber":"6","sectionType":"section","heading":"Payments out of the Fund","content":"#### 6 Payments out of the Fund\n\n6 Payments out of the Fund\n\n> > (1) There is to be paid out of the Liability Management Fund the money required or permitted to be paid out of the Fund by or under this or any other Act.\n> \n> > (2) The Ministerial Corporation may direct that money be paid out of the Liability Management Fund for any of the following purposes—\n> > \n> > > (a) to pay employer contributions to the STC Fund on behalf of agencies, in order to meet accruing or accrued superannuation liabilities of the STC Fund,\n> > \n> > > (b) to pay pensions or superannuation benefits under the [Judges’ Pensions Act 1953](/view/html/inforce/current/act-1953-041),\n> > \n> > > (c) to pay the superannuation contributions surcharge under the [Superannuation Contributions Tax Imposition Act 1997](http://www.legislation.gov.au/) of the Commonwealth on surchargeable contributions made under the [Judges’ Pensions Act 1953](/view/html/inforce/current/act-1953-041),\n> > \n> > > (d) to reimburse the Department of Justice for amounts paid by the Department for any of the purposes mentioned in paragraphs (b) and (c),\n> > \n> > > (e) subject to subsection (3), to repay, on or before maturity, borrowings raised by the Treasury Corporation.\n> \n> > (3) Money may be paid out of the Liability Management Fund to repay borrowings raised by the Treasury Corporation only if—\n> > \n> > > (a) an actuary of the STC Fund has given to the Treasurer a report on the amount of the net liabilities of the STC Fund as at 30 June immediately preceding the date of the proposed repayment, and\n> > \n> > > (b) the amount of money to be paid out is not greater than the amount (if any) in the Liability Management Fund that is in excess of the net liabilities of the STC Fund as at that 30 June.\n> \n> > (4) Money may be paid out of the Liability Management Fund to meet expenses related to the Fund or the Ministerial Corporation.\n> \n> > (5) The Ministerial Corporation may invest money in the Liability Management Fund that is not immediately required for the purposes of the Fund—\n> > \n> > > (a) if the Ministerial Corporation is a GSF agency for the purposes of Part 6 of the [Government Sector Finance Act 2018](/view/html/inforce/current/act-2018-055)—in any way that the Ministerial Corporation is permitted to invest money under that Part, or\n> > \n> > > (b) if the Ministerial Corporation is not a GSF agency for the purposes of Part 6 of the [Government Sector Finance Act 2018](/view/html/inforce/current/act-2018-055)—in any way approved by the Treasurer.\n> \n> > (6) In this section, employer contributions means the amount that the Treasurer, on actuarial advice, determines to be the Crown’s liability, for the period to which the payment relates, to contribute towards the provision of superannuation benefits payable under an Act under which an STC scheme is established or constituted.\n> \n> **s 6:** Am 2017 No 22, Sch 4.20; 2018 No 70, Sch 3.27; 2022 No 29, Sch 1.1\\[3\\].","sortOrder":7},{"sectionNumber":"Part 3","sectionType":"part","heading":"Ministerial Corporation and Management Committee","content":"# Part 3 Ministerial Corporation and Management Committee\n\nPart 3 Ministerial Corporation and Management Committee","sortOrder":8},{"sectionNumber":"7","sectionType":"section","heading":"Constitution and functions of Ministerial Corporation","content":"#### 7 Constitution and functions of Ministerial Corporation\n\n7 Constitution and functions of Ministerial Corporation\n\n> > (1) There is constituted by this section a corporation with the corporate name of Liability Management Ministerial Corporation.\n> \n> > (2) The Ministerial Corporation has the function of managing the Liability Management Fund.\n> \n> > (3) The Ministerial Corporation has such other functions as are conferred or imposed on it by or under this or any other Act.","sortOrder":9},{"sectionNumber":"8","sectionType":"section","heading":"Management of Ministerial Corporation","content":"#### 8 Management of Ministerial Corporation\n\n8 Management of Ministerial Corporation\n\n> > (1) The affairs of the Ministerial Corporation are to be managed by the Secretary in accordance with any directions of the Treasurer.\n> \n> > (2) Any act, matter or thing done in the name of, or on behalf of, the Ministerial Corporation by the Secretary, or with the authority of the Secretary, is taken to have been done by the Ministerial Corporation.","sortOrder":10},{"sectionNumber":"9","sectionType":"section","heading":"Financial provisions relating to Ministerial Corporation","content":"#### 9 Financial provisions relating to Ministerial Corporation\n\n9 Financial provisions relating to Ministerial Corporation\n\n> > (1) The financial year of the Ministerial Corporation is the year commencing on 1 July.\n> \n> > (2) The annual report of the Ministerial Corporation must be published as part of the Treasury’s annual report.\n> \n> **s 9:** Am 2022 No 29, Sch 1.1\\[4\\].","sortOrder":11},{"sectionNumber":"10","sectionType":"section","heading":"Constitution and functions of Management Committee","content":"#### 10 Constitution and functions of Management Committee\n\n10 Constitution and functions of Management Committee\n\n> > (1) There is constituted by this section a Management Committee consisting of—\n> > \n> > > (a) the Secretary, and\n> > \n> > > (b) another officer of the Treasury appointed by the Secretary, and\n> > \n> > > (c) the Chairperson of the STC Board or his or her nominee, and\n> > \n> > > (d) the Chief Executive of the Treasury Corporation or his or her nominee, and\n> > \n> > > (e) at least one other person (who is not an officer of the Treasury) appointed by the Treasurer.\n> \n> > (2) The Management Committee is to advise the Secretary in relation to the management of the Liability Management Fund, including—\n> > \n> > > (a) investment strategy, and\n> > \n> > > (b) appointment of asset custodians, consultants, investment managers and other service providers, and\n> > \n> > > (c) monitoring and reviewing the performance of assets, investments and service providers.\n> \n> > (3) The Management Committee is to review from time to time the long term fiscal target to eliminate total State sector unfunded superannuation liabilities by 30 June 2030.","sortOrder":12},{"sectionNumber":"11","sectionType":"section","heading":"Miscellaneous provisions relating to Management Committee","content":"#### 11 Miscellaneous provisions relating to Management Committee\n\n11 Miscellaneous provisions relating to Management Committee\n\n> > (1) A member of the Management Committee is to hold office on a part-time basis.\n> \n> > (2) A member of the Management Committee referred to in section 10 (1) (e) is to hold office for such period (not exceeding 4 years) as is specified in the member’s instrument of appointment, but is eligible for reappointment if otherwise qualified. Any other member is to continue as a member of the Committee while he or she holds the office that qualified him or her for appointment.\n> \n> > (3) A member of the Management Committee referred to in section 10 (1) (c) or (e) is entitled to be paid such remuneration (including travelling and subsistence allowances) in respect of work done as a member of the Committee as the Treasurer may from time to time determine in respect of the member.\n> \n> > (4) A matter or thing done or omitted to be done by the Management Committee, a member of the Committee or a person acting under the direction of the Committee does not, if the matter or thing was done or omitted to be done in good faith for the purpose of executing this or any other Act, subject a member or a person so acting personally to any action, liability, claim or demand.\n> \n> > (5) The Management Committee is to determine the procedure for the calling of meetings of the Management Committee and for the conduct of business at those meetings.","sortOrder":13},{"sectionNumber":"Part 4","sectionType":"part","heading":"Miscellaneous","content":"# Part 4 Miscellaneous\n\nPart 4 Miscellaneous","sortOrder":14},{"sectionNumber":"12","sectionType":"section","heading":"Employer contributions to be made only in accordance with this Act","content":"#### 12 Employer contributions to be made only in accordance with this Act\n\n12 Employer contributions to be made only in accordance with this Act\n\n> > (1) Despite any provision in any Act or instrument, STC may not require the Crown to pay employer contributions on behalf of an agency unless there is insufficient money in an employer reserve within the STC Fund to pay the employer-financed component of a benefit or other amount payable from the reserve.\n> \n> > (2) Anything done or omitted to be done by STC in compliance with this section is not to be construed as a breach of the statutory obligations or fiduciary duties of STC and no action, liability, claim or demand lies against STC, or a member of the Board, officer or employee of STC, for anything done or omitted to be done in compliance with this section.\n> \n> **s 12:** Am 2022 No 29, Sch 1.1\\[2\\].","sortOrder":15},{"sectionNumber":"13","sectionType":"section","heading":"Regulations","content":"#### 13 Regulations\n\n13 Regulations\n\n> The Governor may make regulations, not inconsistent with this Act, for or with respect to any matter that by this Act is required or permitted to be prescribed or that is necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":16},{"sectionNumber":"14","sectionType":"section","heading":null,"content":"#### 14\n\n14 (Repealed)","sortOrder":17},{"sectionNumber":"15","sectionType":"section","heading":"Review of Act","content":"#### 15 Review of Act\n\n15 Review of Act\n\n> > (1) The Minister is to review this Act to determine whether the policy objectives of the Act remain valid and whether the terms of the Act remain appropriate for securing those objectives.\n> \n> > (2) The review is to be undertaken as soon as possible after the period of 5 years from the date of assent to this Act.\n> \n> > (3) A report on the outcome of the review is to be tabled in each House of Parliament within 12 months after the end of the period of 5 years.","sortOrder":19},{"sectionNumber":"16","sectionType":"section","heading":"Savings, transitional and other provisions","content":"#### 16 Savings, transitional and other provisions\n\n16 Savings, transitional and other provisions\n\n> Schedule 1 has effect.\n> \n> **s 16:** Ins 2006 No 50, Sch 2 \\[1\\].","sortOrder":20},{"sectionNumber":"Schedule 1","sectionType":"schedule","heading":"Savings, transitional and other provisions","content":"# Schedule 1 Savings, transitional and other provisions\n\nSchedule 1 Savings, transitional and other provisions\n\n(Section 16)\n\n**sch 1:** Rep 2003 No 82, Sch 3. Ins 2006 No 50, Sch 2 \\[2\\].","sortOrder":21}],"analysis":{"issue_detection":{"absurdities":[],"contradictions":[]},"summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"Based on available information, the Act appears to have retained its original purpose of managing NSW general government liabilities throughout its amendment history. The amendments appear to be technical or administrative in nature rather than expansions or contractions of the fund's core purpose."},"complexity_factors":["Specialised government financial/accounting concepts (liability management, unfunded superannuation)","Multiple amendments over 20+ years creating layered versions","Interacts with broader NSW budget and financial framework legislation","Limited substantive content visible in the provided text — actual operative provisions not displayed, making full analysis difficult","Narrow scope reduces overall complexity despite technical subject matter"],"plain_english_summary":"The Act creates the General Government Liability Management Fund to help NSW manage and pay long‑term public obligations—notably unfunded superannuation and legacy debts. It mainly affects public servants whose pensions are government‑paid, taxpayers who ultimately bear the cost, and Treasury/Treasurer who oversee the fund. It’s technical “machinery” law to ensure liabilities are funded responsibly and don’t threaten fiscal stability."},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"The Act’s operational scope was extended after enactment by transferring the Health Super‑Growth Fund assets/liabilities into the Liability Management Fund (Schedule 1 cl 2 inserted 2006) and by later amendments refining payment, investment and governance rules (see s6 on payments/investments, s5 on receipts, s12 on employer-contribution limits, and definitional updates in s3). Those changes broadened the Fund’s asset base and clarified when and how monies may be applied, and imposed an actuarial precondition on repaying Treasury Corporation borrowings (s6(3))."},"complexity_factors":["Multiple interacting payment rules (employer contributions, judges’ pensions, surcharge, reimbursements, borrowings) increase decision points (s6).","Repayment constraint requiring an STC actuary’s report and a surplus-test limits flexibility and ties timing to actuarial valuation (s6(3)).","Investment powers vary depending on GSF agency status or Treasurer approval, creating dual investment regimes and administrative choice (s6(5)).","Management structure concentrates operational control in the Secretary with Treasurer directions, while advice comes from a mixed Management Committee (ss8,10).","Statutory protections for STC actions complying with the Act alter legal risk and incentives for STC (s12(2)).","Transitional/savings provisions transfer another fund’s assets/liabilities into the Fund, expanding scope and requiring coordination (Schedule 1 cl 2).","Regulation-making power and periodic statutory review create ongoing governance and compliance obligations (ss13,15)."],"plain_english_summary":"Creates a General Government Liability Management Fund to hold Crown transfers, investment returns and other authorised receipts, and sets who can pay money out of it. The Fund can meet employer superannuation contributions for public-sector schemes, judges’ pensions and certain Treasury Corporation borrowings (subject to actuarial limits). Management sits with a Liability Management Ministerial Corporation run by the Treasury Secretary and advised by a Management Committee. It affects the Crown, public-sector employers (agencies), STC and beneficiaries by centralising payment and investment decisions."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":true,"description":"The original 2002 Act focused narrowly on establishing the Fund and basic governance. Amendments in 2006, 2017, 2018, and particularly 2022 have significantly expanded the scope. The 2022 amendments (Sch 1.1) appear to have broadened payment authorities and updated references to modern financial management legislation (Government Sector Finance Act 2018). The 2006 amendments brought in the Health Super-Growth Fund closure and transfer. The legislation has evolved from a simple 'bucket for super money' into a more complex liability management tool interacting with modern public financial management frameworks."},"complexity_factors":["Moderate cross-referencing to 9 different superannuation Acts spanning 1906-1987 to define the 'STC Fund'","Nested conditional logic in section 6(3) restricting borrowings repayment — requires actuarial report AND comparison against net liabilities","Dual investment pathways in section 6(5) depending on whether Ministerial Corporation qualifies as a 'GSF agency' under the Government Sector Finance Act 2018","Interaction between three entities: Ministerial Corporation (legal owner), Secretary (manager), and Management Committee (advisory)","Protection clauses in sections 11(4) and 12(2) creating immunities from legal action for committee members and STC","Schedule 1 contains transitional provisions dealing with repeal and transfer of the Health Super-Growth Fund"],"plain_english_summary":"**What this law does:**\n\nThis Act creates a special government bank account called the **General Government Liability Management Fund** (or just \"the Fund\"). Its main job is to help New South Wales manage and pay down its massive superannuation (pension) debts owed to public servants.\n\n**Who it affects:**\n\n* **Government agencies** that employ public servants covered by old state superannuation schemes\n* **Retired public servants** who receive pensions from these schemes\n* **Judges** who receive pensions under a separate Judges' Pensions Act\n* **Taxpayers** generally, since the Fund uses public money to reduce long-term state debt\n\n**How it works:**\n\n* The **Fund receives money** from the government budget, investment returns, and other sources\n* A **Ministerial Corporation** (basically a legal entity run by the Treasury Secretary) manages the Fund\n* A **Management Committee** advises on investment strategy — this includes Treasury officials, the superannuation fund chair, and independent members\n* The **Fund pays out money** for specific purposes:\n  * Employer super contributions for government agencies\n  * Judges' pensions and related taxes\n  * Repaying government borrowings (but only if there's enough money left over after covering super debts)\n\n**Why it matters:**\n\nBack in 2002, NSW had billions of dollars in \"unfunded\" superannuation liabilities — meaning the government had promised pensions to public servants but hadn't set aside enough money to pay them. This Act created a mechanism to gradually fund these promises and aimed to eliminate the state's total unfunded super liabilities by **30 June 2030**.\n\nThe Act also protects the superannuation trustee (STC) from being sued when it follows these funding rules, even if that means not demanding immediate payment from the government when employer reserves run low."}},"importantCases":[],"_links":{"self":"/api/acts/general-government-liability-management-fund-act-2002","history":"/api/acts/general-government-liability-management-fund-act-2002/history","analysis":"/api/acts/general-government-liability-management-fund-act-2002/analysis","conflicts":"/api/acts/general-government-liability-management-fund-act-2002/conflicts","importantCases":"/api/acts/general-government-liability-management-fund-act-2002/important-cases","documents":"/api/acts/general-government-liability-management-fund-act-2002/documents"}}