July 26th 2012

Page 1

Southern Peninsula

Features inside: REAL ESTATE CENTRE LIFTOUT FOOD & ENTERTAINMENT PAGES 26–28 SOUTHERN PENINSULA SCOREBOARD PAGES 29–31

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26 July – 8 August 2012 Your FREE fortnightly community newspaper covering Safety Beach to Portsea For all your advertising and editorial needs, call us on 1300 MPNEWS (1300 676 397) or email: team@mpnews.com.au www.mpnews.com.au STEVE Williams conducts music students of Rosebud Secondary College, Peninsula School, Toorak, Woodleigh, Haileybury and Flinders Christian colleges were at Peninsula Community Theatre on Wednesday for Orchestra Victoria’s On The Move program, which is teaching and inspiring more than 1000 students around the state. The best performers will play Hamer Hall in December. Picture: Yanni

Shire’s $1m for super hole By Mike Hast MORNINGTON Peninsula Shire will find “annual organisational efficiency savings� of $500,000 a year and retain a “rate income windfall� of $590,000 a year to make a down payment on its estimated $11 million superannuation fund shortfall. The super black hole for all Victorian councils of about $400 million was revealed earlier this month following a

review of the Defined Benefit Plan by the plan’s trustee, Vision Super. The Municipal Association of Victoria said Vision Super revealed most of the shortfall occurred during the final six months of 2011 “due to investment market volatility�, but no payments would be due till 1 July 2013. The News understands the shortfall is due to the global financial crisis and the fund under-estimating the length

of time beneficiaries are living after retirement. The super plan for local government employees was a compulsory scheme from 1982 and was closed to new members in 1993, the MAV said. “Unlike other exempt public sector schemes, it must be fully funded to pay the benefits owed to members now and into the future.� The shire’s so-called rate income

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annuation specialist that the black hole had not yet been defined and the shire may be liable for more than $11 million. “Actuaries are still working out the final figure,� he said. The estimated $11 million shortfall is the third call on the fund in the past decade, with the shire previously being asked to pay about $17 million. It had to borrow money to pay the two previous payments.

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windfall comes from the revaluation of some properties. When the council passed the budget on Monday night, it decided to allow for the super liability from the two sources. The mayor, Cr Frank Martin, said the move would ensure provision of council services would not be affected and future rates would not increase to fund the shortfall. The News has been told by a super-

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July 26th 2012 by Mornington Peninsula News Group - Issuu