Statement of Receipts and Payments of the Consolidated Fund and ...

(b) Operating Leases for Transport Equipment
Table B.4 provides estimates of all future commitments on existing operafing leases foi
transport equipment.
TABLE B.4
ESTIMATED TRANSPORT LEASE COMMITMENTS
FOR FUTURE YEARS(a)
Payable within One Year
$m
39.5
Payable Between One Year and Two Years 42.2
Payable Between Two Years and Five Years (b) 461.4
Payable After Five Years 53.7
Total Payable ^ 596.8
Notes: (a) Rental estimates are in respect of transport operating leases only,
(b) Includes $168.8 million of deferred rentals payable in 1997.
Source: Treasury estimates
6. UNFUNDED SUPERANNUATION LIABILITIES
Unfunded liabilifies of public sector superannuation schemes result from the decisions of
successive Governments since 1926 not to meet the employer share of superannuafion benefits for
budget sector employees unfil the benefits are actually being paid. The present level of these
liabilities results largely from decisions in 1975 to index benefits from the schemes and during
the 1980s to substanfially widen their coverage. The unfunded liability is measured as the gap
between an actuarial esfimate of employee benefits accrued to date and the level of scheme
assets.
Table B.5 provides details of the unfunded liability for the major Victorian public sector
schemes. The figures are subject to change at triennial reviews where independent actuaries
may, in the light of a scheme's more recent experience, change the assumptions on which their
valuafions of scheme liabilities are based.
Victorian pub'x sector schemes now have a membership exceeding 415 000, pay 62 000
pensions annually ana manage investments totalling $6.5 billion. Those covering budget sector
employees are multi-employer funds established along industry lines and are largely unfunded for
the employer share of benefits. Employees of non-budget sector bodies such as Gas and Fuel
Corporation of Victoria, State Electricity Commission of Victoria and Melbourne Water are
covered by funded single-employer schemes established by the respective authorities.
Apart from indexation and coverage, the level of the unfunded liability depends on many
factors including the design of benefits and the timing of employer contributions. The unfunded
liability of the State Superannuafion Fund includes $1.2 billion resulting from a decision in 1966
to smooth the budgetary impact of introducing part-commutafion of pensions. Under these
arrangements, the employer share of commuted lump sums is met on the basis that no
commutafion has occurred. The introduction in 1988 of flexible cover options for State