Buswell moves to review GESB plan

Treasurer Troy Buswell has confirmed the appointment of an independent adviser to review the mutualisation of GESB, the public sector superannuation fund.

Mr Buswell said Rod Whithear, a federal public servant currently working on superannuation policy in the Federal Department of Finance and Deregulation, had been seconded to the WA public service to review all aspects of the proposed mutualisation reforms.

The treasurer said mutualisation had been delayed by the global financial crisis and questions over the tax implications of mutualisation.

"The global downturn in financial markets has reduced the level of GESB's reserves, raising issues about the costs to taxpayers of mutualisation," Mr Buswell said.

"The Federal Government has also flagged that GESB's largest fund, West State Super, may be subject to higher taxation if mutualisation proceeds. I am not prepared to expose GESB members or WA taxpayers to that risk.

"The Whithear Review will provide independent advice to me on how we can reinvigorate the stalled reform process and ensure that choice of superannuation fund can be delivered while the State's and members' interests are protected."

Mr Whithear has had more than 20 years' experience serving successive Federal governments. He recently completed a Scoping Study to determine the structure and future of the Federal Government's public sector superannuation arrangements.

The Federal Department of Finance and Deregulation agreed to second Mr Whithear so that WA could utilise the contemporary knowledge of Federal and State Government superannuation arrangements gained through the Commonwealth Scoping Study.

Mr Whithear will commence on July 27, 2009, with his review and recommendations to be delivered in a confidential report to the Treasurer by the end of 2009.

"I look forward to providing advice to the Government on the most efficient and effective arrangements for State Government superannuation that work in the interests of State taxpayers and members of Government superannuation schemes," Mr Whithear said.