Government employees.

The "unfunded liability'' is disclosed in Government Auditor Mr. Larry Dennis's report on the Public Service Superannuation Fund.

It represents the financial gap between the amount in the fund and the benefits it is liable for.

The report was tabled in the House of Assembly on Friday by Finance Minister the Hon. David Saul.

Yesterday Dr. Saul moved to quell any possible alarm over the shortfall. He said it was not significant to an actuary -- a statistical expert.

And Dr. Saul stressed Government had already acted to reduce the unfunded liability. It had put $1 million into the fund after announcing its intention to cut the gap in the February budget. The same amount would be funnelled regularly into the fund over the next decade.

In his Budget statement, Dr. Saul announced $500,000 was expected to be credited to the fund during 1992/93 as a result of discontinuing the practice of returning the Government's contribution to the Consolidated Fund when employees leave Government service before their pensions are vested.

The auditor's report on pension liability is based on a March 31, 1989, valuation.

It states Government employees had built up benefits which would end up costing $208,655,000 by March 31, 1990.

Net assets of the fund are $92,070,438 -- resulting in an "unfunded liability'' of $116,584,562, the report states.

The fund covers civil servants, teachers, Police, prison officers, and blue collar workers.

It was introduced in 1976. Previously Government employees enjoyed non-contributory pensions.

Over the next five years the contributions increased annually until employees were all paying five percent of their income.

Said Dr. Saul yesterday: "In fact the liabilities from a actuary's point of view are not a great deal, as long as you're concerned with the long-term.'' "As a prudent employer we have now put in additional monies,'' he added.

Dr. Saul said the shortfall was no longer presented by the auditor as a major problem. He added he expected the gap to be minimal in around 20 years.

Shadow Finance Minister Mr. Eugene Cox yesterday accused Government of mismanagement of the fund.

"This unfunded liability points to mismanagement of the fund over the years,'' he said.

He claimed Government had previously dipped into the fund to balance its books. "They used money from the pensions fund to make ends meet and make false claims.'' Mr. Cox called for a updated actuarial valuation report as a matter of "urgency.''