Coronavirus: Qld public service super fund stays in surplus

Queensland’s economy hit by virus ‘hammer blow’ but public service super fund stays in surplus throughout.

Queensland Premier Annastacia Palaszczuk stands by Treasurer Cameron Dick as he addresses media during a visit to a Spring Mountain construction site in Brisbane on Monday. Picture: AAP

Queensland’s public service ­defined benefit superannuation fund has remained in surplus during the coronavirus crisis, despite the sharpest fall in global economic activity since World War II.

The $90bn fund is managed by the state-owned Queensland ­Investment Corporation and chief executive Damien Frawley on Monday revealed the fund’s return for the financial year to date was -6.5 per cent. Returns are on average 8.1 per cent per annum.

Mr Frawley said the defined benefit fund — the only public service super fund of its kind in the country to be fully funded — has remained in surplus despite the bleak economic conditions.

“(The fund) has been significantly impacted by the COVID-19 pandemic,” Mr Frawley said in a written briefing to a parliamentary committee. “While the final performance for FY2020 will not be known until after June 30 valuations are finalised, it is estimated that the return for the financial year to date is ­approximately -6.5 per cent, which accounts for listed market valuation moves, as well as estimates of unlisted asset revaluations to occur at year end.

“Not withstanding this negative performance, the fund had a strong surplus position heading into the pandemic and has remained in surplus throughout.”

The super update is significant, because it means the government will not have to borrow more money to top up the fund.

Treasurer Cameron Dick said the state’s economy had taken a near $20bn hit because of the pandemic, with 168,000 Queenslanders losing their jobs in two months. Mr Dick described the coronavirus as a “hammer blow”.