CITY of Greater Bendigo staff hope to fix a superannuation shortfall which cost the organisation $9.7 million this financial year.
Mayor Lisa Ruffell, councillors, chief executive Craig Niemann and director of organisation support Marg Allan will meet local government minister Jeanette Powell on Thursday to discuss the issue.
The superannuation scheme, which has closed, guarantees 7.5 per cent returns to employees and the council must fund the deficit if the fund underperforms.
A report to go before council tonight notes $4 million in capital works were deferred or cancelled due to the shortfall.
The council’s director of organisation support Marg Allan said the council wanted to transfer the scheme into state government hands so it didn’t have to be fully funded. “$4 million worth of projects the community were expecting to be delivered, the council is not able to do them this year,” she said.
“One of the things we’re trying to achieve is better notification of when there will be a call on council for funds so that we can budget for it.
“That’s one of the real challenges, when you get an account during the year that’s not in your budget to try to work out how you’ll fund it.”
Ms Allan said the council had paid $23 million into the fund since it closed to additional members in 1993.
“It impacts not only us, but every local government authority right across Victoria,” she said.
“The council wants to raise the profile of this issue with the state government.
“We’ve already met with the honourable Bill Shorten at a federal level, now with the State Government to try work with them to see what the solution could be.”