14State contribution to costs of higher education superannuation

14 State contribution to costs of higher education superannuation

(1) Financial assistance to which a State is entitled under this Act in relation to a grant year is granted on the condition that the State will pay to the Commonwealth the amount (if any) determined by the Education Minister on or before 31 March in the grant year as representing the State’s share of the costs of any unfunded superannuation liabilities of higher education institutions in the State, being liabilities required to be discharged during the grant year. (2) The amount to be determined under subsection (1) in relation to a State is the amount worked out using the formula: (ETP  SRC) + (UHESL – [ET + AA]) where:

ETP (estimated total payments) means the estimated total of the payments required to be made during the grant year in discharge of unfunded superannuation liabilities of higher education institutions in the State attributable to service before 1 January 1974.

SRC (State recurrent costs) means the fraction representing, as nearly as is practicable, the proportion of the recurrent costs of higher education in the State borne by the State in the period during which service before 1 January 1974 was being performed.

UHESL (unfunded higher education superannuation liabilities) means the estimated total of the payments required to be made during the grant year in discharge of unfunded superannuation liabilities of higher education institutions in the State attributable to service on or after 1 January 1982.

ET (estimated total) means the amount that would be the estimated total of such payments if the benefits provided under superannuation schemes under which those liabilities arise were reduced to a level that could be financed by a long‑term employer contribution at the rate of 14% of members’ salaries.

AA (additional amount) means any amount that the Education Minister determines is appropriate having regard to relevant industrial awards relating to superannuation.

(3) The Treasurer may, at any time after 31 May in the grant year, deduct from a payment due to a State under this Act, in respect of the grant year or a later year, any amount that is payable by the State to the Commonwealth under subsection (1) and remains unpaid. (4) An amount deducted under subsection (3) from a payment due to a State is taken to have been paid by the State to the Commonwealth under subsection (1). (5) In this section:

higher education institution has the same meaning as in the Employment, Education and Training Act 1988.