Superannuation

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.

• PSSap ancillary membership

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.

• Choice of superannuation
• Form 9: Superannuation Options

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.

• PSSap Contact Details
• PSSap Product Disclosure Statement
• Form 9: Superannuation Options

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.

• PSS Contact Details
• PSS Product Disclosure Statement
• Form 9: Superannuation Options

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:

• employer and employee contributions; and
• How your retirement benefit is calculated.

• CSS Contact Details
• CSS Product Disclosure Statement
• Form 9: Superannuation Options

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.

• Form 9: Superannuation Options