Superannuation

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Individual flexibility arrangement - superannuation allowance

Current Term of Employment flexibility arrangement - superannuation allowance

Existing Interest in the CSS or PSS

Further information

 

Please note:
  • The information below is general information relating to the superannuation arrangements available to persons employed under the MOP(S) Act.
  • Superannuation arrangements and legislation may change from time to time without this page reflecting those changes.
  • For information on what arrangements are suitable for your personal circumstances, please consult a licensed financial adviser.
  • For further information about Commonwealth funded superannuation schemes, please visit the Commonwealth Superannuation Corporation.

Members of Parliament (Staff) Act 1984 (MOP(S) Act) employees are entitled to superannuation in accordance with the relevant Commonwealth legislation.

To view information on Commonwealth-funded superannuation schemes applying to MOP(S) Act employees and superannuation choice, please click on the links below.

Exercising Choice of Superannuation Funds

Superannuation choice allows eligible employees to nominate a complying superannuation fund or retirement saving account (RSA) in which employer superannuation contributions under the Superannuation Guarantee (Administration) Act 1992 (SG Act) will be made. Employer superannuation contributions under the SG Act for employees under the Commonwealth Members of Parliament Staff Enterprise Agreement 2016-2019 will be made at the rate applying to the Public Sector Superannuation accumulation plan (PSSap), currently 15.4% of ordinary time earnings or the amount specified in the deed established by the PSSap, whichever is higher.

Employees who commenced their current term of employment under the MOP(S) Act after 1 July 2005 and are currently a member of PSSap, or a new employee who does not have an existing interest in the Public Sector Superannuation Scheme (PSS) or Commonwealth Superannuation Scheme (CSS), are eligible to exercise superannuation choice.

It is possible for existing employees who are members of the PSS to exercise choice of superannuation fund, however, they must first join the PSSap. PSS members may choose to cease their PSS membership at any time and join the PSSap. Once an employee is a member of the PSSap, the PSSap rules apply, allowing the employee to leave the PSSap at any time and exercise choice of superannuation fund. Employees wishing to cease their PSS membership and join the PSSap are advised to consult a licensed financial adviser prior to making any arrangements.

Existing employees who are current contributing members in the CSS are not eligible to exercise choice of superannuation fund.

Members of the CSS and PSS may choose to join the PSSap as an ancillary member in order to make personal (after tax) or salary sacrifice contributions. Ancillary membership of the PSSap has no effect on the employee’s membership of the CSS or PSS.

If you are eligible to exercise superannuation choice and wish to select a fund of your choice, or change your existing choice, please complete Form 9: Superannuation Options;and provide it to Ministerial and Parliamentary Services.

Public Sector Superannuation accumulation plan

The PSSap commenced operation on 1 July 2005 under the arrangements established by the Superannuation Act 2005 and the PSSAP Trust Deed . The PSSap is an accumulation scheme managed by the Commonwealth Superannuation Corporation.

Employees who commenced MOP(S) Act employment on or after 1 July 2005 are generally eligible to join the PSSap. If an employee has an existing interest in the PSS, it is possible to cease their PSS membership and join the PSSap. If an employee has an existing interest in the CSS, they cannot join the PSSap (with the exception of casual MOP(S) Act employees with a deferred benefit in the CSS).

The PSSap is the default fund under the choice of superannuation fund arrangements for MOP(S) Act employees who commenced their current term of employment on or after 1 July 2005 meaning that, for new employees who do not choose an alternative complying superannuation fund or retirement savings account (RSA), employer superannuation contributions will automatically be made to the PSSap. Eligible employees, who have not elected to join the PSSap, can still elect to join at any time.

Employer superannuation contributions to the PSSap will be paid in accordance with the rules of the PSSap at 15.4% of the employee’s ordinary time earnings or the deed to establish the PSSap, whichever is higher. Employees also have the option of making voluntary personal contributions, including salary sacrifice contributions, to the PSSap.

If you are interested in joining the PSSap, please contact the Staff Help Desk for an information pack and membership election form.

Public Sector Superannuation Scheme

The PSS closed to new members on 1 July 2005. The PSS is a defined benefit scheme managed by the Commonwealth Superannuation Corporation (CSC). Depending upon individual circumstances, employees with an existing interest in the PSS may be able to elect to recommence membership in the scheme on commencing MOP(S) Act employment or on commencing a new term of MOP(S) Act employment.

PSS members can make contributions of between 2% and 10% of their superannuation salary to the PSS or they can elect to make no contributions at all. Employee contributions bear a direct relationship to the benefit the employee receives on retirement. The amount contributed by the employer within an employee’s PSS account bears no direct relationship to the benefit the employee receives on retirement. The CSC website provides information on how the retirement benefit is calculated .

It is possible for PSS members to cease their membership with the PSS at any time and join the PSSap. Employees wishing to cease their PSS membership and join the PSSap are advised to consult a licensed financial adviser prior to making any arrangements.

Commonwealth Superannuation Scheme

The CSS closed to new members from 1 July 1990. The CSS is a defined benefit scheme managed by the Commonwealth Superannuation Corporation (CSC).

Depending upon individual circumstances, new employees with an existing interest in the CSS may be required to recommence in the scheme or may be able to elect to recommence in the scheme on commencing a new period of MOP(S) Act employment.

It is possible for former members of the CSS who, on rejoining the CSS, wish to cease membership of the CSS to join the PSS, however, there is generally a three month period from commencement of employment in which the employee must notify the CSS of such a decision.

The CSC website provides information on:

Superannuation (Productivity Benefit) Act 1988

Access to the provisions under the Superannuation (Productivity Benefit) Act 1988 (PB Act) closed for new employees from 1 July 2006. A small number of MOP(S) Act employees remain covered by the PB Act. Employees covered by the PB Act continue to be paid employer superannuation contributions in accordance with the PB Act during their current term of employment, unless they elect to join the PSS or PSSap.

Employer superannuation contributions to funds under the PB Act are generally 9% of the employee’s superannuation salary. Contributions under the PB Act are unable to be changed through the Enterprise Agreement. MOP(S) Act employees covered by the PB Act who commenced their current term of MOP(S) Act employment before 1 July 2005 may remain eligible to join the PSS.

Employees covered by the PB Act who commenced their current term of MOP(S) Act employment on or after 1 July 2005 may become eligible for choice of superannuation fund and employer superannuation contributions under the SG Act by electing to join the PSSap and then choosing another fund.

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.

Further information

If you are unsure of the superannuation fund membership options available to you, please contact the Staff Help Desk.

Last updated: 09 December 2019