A NEW Municipal Association of Victoria taskforce is lobbying governments to give Moorabool Council more time to fill a $2.5million superannuation budget black hole.
The Weekly reported last month that the council had to foot the bill under the now-defunct defined benefits plan.
MAV chief executive Rob Spence said the old scheme, which finished in 1993, was a “volatile and unpredictable” model that councils couldn’t plan ahead for.
Under the scheme, payments to council employees during retirement are fixed by a formula based on a final salary and the council has to pick up the tab for any shortfall.
Mr Spence said recent changes meant Moorabool had up to 15 years to pay out its $2.5million bill, but that period could be extended.
“This doesn’t mean councils are exempt from paying, it just means they will be able to smooth their payments out over time,” he said.
“It would be the same system under which state and federal governments operate.”
Mr Spence said the MAV would continue to negotiate with the government to access lower borrowing rates to help councils pay for the shortfall.
Local Government Minister Jeanette Powell said any legislative changes to the scheme would be made by the federal government.
“The Victorian government will continue to provide advice on how municipal councils can meet their obligations under the defined benefits scheme,” she said.
East Moorabool ward’s Cr Russ Hendry last month said the council had just finished paying off $400,000 under the scheme. This is the fourth time in three decades that a call for contributions has been made to councils.
The council will investigate how many employees have benefited from the scheme.
