THE Glenelg Shire Council will decide how to tackle a $4.05 million super debt at tomorrow night’s council meeting.
In July the council was notified of the shortfall for current and ex-employees in receivership of Vision Super, a commonwealth regulated scheme which requires full funding.
State-wide there’s a $453 million shortfall in the scheme due to poor returns during the global financial crisis, which is due July 1 to roughly 9000 members.
That figure increases by another $80 million with superannuation contributions tax and is due July 1 to roughly 10,100 members.
A Municipal Association of Victoria (MAV) superannuation taskforce released 19 recommendations on Friday that will form the basis of the council’s decision.
The recommendations include access to cheaper borrowing rates, waiving government costs, and regulatory reforms.
Council chief executive officer Sharon Kelsey, who was appointed to the taskforce, said councils will have to pay the shortfall but the recommendations aim to minimise the impact.
Read more in Monday’s Portland Observer.