❓ GESB identified and rectified an anomaly in recouping Gold State Super benefits from the Consolidated Fund, caused by omissions in recoup reports submitted to the Department of Treasury and Finance. The issue, totaling $43.66 million, did not affect member payments or entitlements.
AnsweredQoN 5791Legislative Assembly
QuestionView source ↗
The issue did not duplicate member benefit payments nor did it impact member entitlements. Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on http://www.rtlib.com
AnswerView source ↗
Answered
9 August 2011
Response time
48 days
In 2009-10 GESB's financial controls identified an anomaly in the percentage of Gold State Super benefits being recouped from the Consolidated Fund. Further investigation confirmed an issue with the recoup report being generated by our administration platform for submission to Department of Treasury and Finance.
The issue resulted in a number of member benefit recoup reversals being omitted from the weekly recoup reports. The 2 reasons for these omissions are detailed below
1) Partial Benefits recoups. Certain events (mainly retrospective salary adjustments but also other events such as change of employer records or bulk employer moves) caused member partial benefit recoup records to be recalculated. In these instances the recalculated recoup amount was included on the submission to Department of Treasury and Finance but the reversal of the original recoup was not, thus causing a duplicate recoup. These constitute 224 of the number of events below and totalled $34 980 538 (before interest)
2) A number of member final benefits were reversed some after the recoup element had been recovered from Treasury. The reversal of the recoup amount was not included on the Treasury recoup submission. These constitute 23 of the number of events below and totalled $5 652 786 (before interest)
Summary of Reversals omitted from Submission to Treasury
Year
Number
Reversals Omitted
Interest
Total
Pre 2007
12
$1 061 834
$329 197
$1 391 031
2007-08
27
$3 570 291
$502 379
$4 072 670
2008-09
118
$18 483 622
$1 504 802
$19 988 424
2009-10
90
$17 517 577
$691 074
$18 208 651
Grand Total
247
$40 633 324
$3 027 452
$43 660 776
In June 2010 GESB introduced a series of database queries to identify any reversals missing from the recoup report being generated. All potential issues identified are investigated and the treasury submission is updated as necessary.
The issue did not duplicate member benefit payments nor did it impact member entitlements.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
The issue resulted in a number of member benefit recoup reversals being omitted from the weekly recoup reports. The 2 reasons for these omissions are detailed below
1) Partial Benefits recoups. Certain events (mainly retrospective salary adjustments but also other events such as change of employer records or bulk employer moves) caused member partial benefit recoup records to be recalculated. In these instances the recalculated recoup amount was included on the submission to Department of Treasury and Finance but the reversal of the original recoup was not, thus causing a duplicate recoup. These constitute 224 of the number of events below and totalled $34 980 538 (before interest)
2) A number of member final benefits were reversed some after the recoup element had been recovered from Treasury. The reversal of the recoup amount was not included on the Treasury recoup submission. These constitute 23 of the number of events below and totalled $5 652 786 (before interest)
Summary of Reversals omitted from Submission to Treasury
Year
Number
Reversals Omitted
Interest
Total
Pre 2007
12
$1 061 834
$329 197
$1 391 031
2007-08
27
$3 570 291
$502 379
$4 072 670
2008-09
118
$18 483 622
$1 504 802
$19 988 424
2009-10
90
$17 517 577
$691 074
$18 208 651
Grand Total
247
$40 633 324
$3 027 452
$43 660 776
In June 2010 GESB introduced a series of database queries to identify any reversals missing from the recoup report being generated. All potential issues identified are investigated and the treasury submission is updated as necessary.
The issue did not duplicate member benefit payments nor did it impact member entitlements.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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