PSSap membership rules have changed
Eligible PSSap members who leave an eligible PSSap employer are able to continue to contribute to PSSap via their private sector or State Government employer.
Existing preserved members are able to recommence as a contributing Choice member via their private sector or State Government employer.
The PSSap minimum 15.4% employer contribution rate does not apply to private employers.
Non eligible employers pay the minimum SG rate, or as required by their industrial agreement or award.
Legislation to allow this change has passed Parliament and is in place as of 4 December 2017.
If your default scheme is PSSap
There will be no change in the way you administer new or existing employees who are PSSap members.
What if I am not an eligible employer for PSSap purposes?
A person who joins your organisation and has a pre-existing preserver or contributory PSSap membership are able to choose the PSSap as their fund of choice.
You will be required to pay a minimum of 9.5% of OTE for these members.
These members are set up through SuperStream in the same way that you set up any member of any other accumulation scheme.
Some employers were initially eligible employers for PSSap purposes but then opted out of this arrangement. These employers have two kinds of PSSap members:
- Those who are members prior to the employer opting out and for whom the employer must pay 15.4% of salary (either FCS or OTE depending on any industrial agreement); and
- A new class of PSSap member for whom the minimum contribution rate is 9.5% of OTE
It is important that you set up each member correctly in your payroll system so that you pay the correct amount of employer contributions.
What do I need to do now?
CSC has communicated with members about this change, we've made the slide deck available for your information.
If any PSSap members leave employment you should let them know that they are able to re-commence PSSap membership. Full details about the change can be found on our PSSap website