Individual flexibility arrangement - superannuation allowance
From 1 July 2017, the Special Minister of State has approved an individual flexibility arrangement (IFA) under clause 13 of the Commonwealth Members of Parliament Staff Enterprise Agreement 2016-2019 to allow eligible ongoing employees to choose to be paid an allowance in exchange for a lower employer superannuation contribution.
The IFA is available to ongoing employees whose employer superannuation is paid under the Superannuation Guarantee (Administration) Act 1992. This does not include employees who are members of the CSS, PSS or PSSap as the employer contributions to these schemes cannot be reduced by an IFA.
Should an employee choose to make an IFA, their employer superannuation contribution will be reduced to 9.5 per cent of their ordinary time earnings instead of the 15.4 per cent contribution under the Enterprise Agreement. The employee will be paid an allowance of 5.3881 per cent of their ordinary time earnings each pay. The allowance is taxable and will also attract an employer superannuation contribution. The employee’s overall remuneration, including employer superannuation, will be unchanged.
If employees have any queries or wish to make an IFA, please contact the Staff Help Desk.
Current Term of Employment flexibility arrangement - superannuation allowance
A MOP(S) Act employee’s current term of employment ceases upon:
- resignation of the employee, or termination by the employing Senator or Member;
- termination of employment by operation of the MOP(S) Act (e.g. the employing Senator or Member dies or ceases to be a Senator or Member, the employing Office Holder ceases to hold the relevant office);
- the commencement of a new period of employment, such as employment by a new Senator or Member, employment at a different classification or employment with a new end date; or
- the end of a non-ongoing or casual period of engagement is reached.
The commencement of a new term of employment does not require a break in employment.
The employment agreements for MOP(S) Act employees include the option to elect to have superannuation contributions paid into the same fund as applied to the employee's previous MOP(S) Act employment, or to change fund and complete Form 9: Superannuation Options.
Please ensure you complete the employment agreement option and, if applicable, complete the Superannuation Options form, otherwise your employer superannuation contributions will default to the PSSap
Existing Interest in the CSS or PSS
A MOP(S) Act employee has an existing interest in the CSS or PSS if the employee:
- is a current contributing member;
- has a deferred benefit in the CSS or PSS; or
- is receiving a CSS or PSS invalidity pension.
If you are unsure of the superannuation fund membership options available to you, please contact the Staff Help Desk.