Commonwealth Coat of Arms

Public Sector Superannuation Scheme Trust Deed

as amended

made under section 4 of the

Superannuation Act 1990

Compilation start date:  13 August 2013

Includes amendments up to: Thirty-Eighth Amendment of the Public Sector Superannuation Scheme Trust Deed

This compilation has been split into 2 volumes

Volume 1: Trust Deed and Rules

Volume 2: Endnotes

Each volume has its own contents

 

About this compilation

This compilation

This is a compilation of the Public Sector Superannuation Scheme Trust Deed as in force on 13 August 2013. It includes any commenced amendment affecting the legislation to that date.

This compilation was prepared on 17 September 2013.

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of each amended provision.

Uncommenced amendments

The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in the endnotes.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If a provision of the compiled law is affected by a modification that is in force, details are included in the endnotes.

Provisions ceasing to have effect

If a provision of the compiled law has expired or otherwise ceased to have effect in accordance with a provision of the law, details are included in the endnotes.

 

 

 

 

 

 

 

DEED

TO ESTABLISH AN OCCUPATIONAL

PUBLIC SECTOR SUPERANNUATION SCHEME

FOR COMMONWEALTH EMPLOYEES

AND CERTAIN OTHER PERSONS

Pursuant to

SECTION 4 OF THE

SUPERANNUATION ACT 1990

as amended pursuant to

SECTION 5 OF THE

SUPERANNUATION ACT 1990

 


TABLE OF PROVISIONS

Clause Item

1 Interpretation

2 Establishment of the Public Sector Superannuation Scheme and the PSS Fund

3 Functions and Powers of CSC

9 Operation of the PSS Fund

10 Investment of the PSS Fund

11 Requests by Minister for Information

12 Delegation by CSC

13 Delegations by the Finance Minister

 


TRUST DEED

THIS DEED is made on 21st June 1990

BY THE COMMONWEALTH OF AUSTRALIA (in this Deed called “the Commonwealth”)

WHEREAS section 4 of the Superannuation Act 1990 (in this Deed called “the Act”) provides that the Minister, for and on behalf of the Commonwealth, must, within 30 days after the commencement of the Act, by Deed establish an occupational Public Sector Superannuation Scheme in order to provide benefits for certain of its employees and for certain other persons.

NOW THIS DEED WITNESSES as follows:

 

1

Interpretation

1.1 In this Deed, where the context requires or admits, a reference to the Deed shall include a reference to the Rules, as set out in the Schedule (in this Deed called “the Rules”), and the Rules shall form part of the Deed. In the case of an inconsistency between the Deed and the Rules, the Deed shall prevail.

1.2 In this Deed, where the context requires or admits, words and expressions defined in the Act or the Rules have the same meanings when used in the Deed. The headings in this Deed and in the Rules are for the convenience of reference only and shall not affect their interpretation.

1.3 In this Deed “Minister” means:

(a) the Finance Minister;

(b) if 2 or more Commonwealth Ministers administer Departments which have functions in relation to the administration of matters to which the Deed relates, the Minister who administers the Department which has the function in relation to each of those matters; or

(c) a member of the Executive Council acting for the time being for and on behalf of any of those Ministers; or

(d) a person, as defined in clause 13, to whom the Finance Minister has delegated his or her powers.

1.3AA In this Deed “Finance Minister” means the Minister administering the Financial Management and Accountability Act 1997.

 

2

Establishment of the Public Sector Superannuation Scheme and the PSS Fund

2.1 There is hereby established an occupational superannuation scheme (in this Deed called “the Public Sector Superannuation Scheme”) to come into force on 1 July 1990 for the benefit of:

(a) persons employed by the Commonwealth and approved authorities;

(b) holders of statutory offices;

(c) other persons who, under Part 3 of the Act, will be required to be, or may become, members of the Public Sector Superannuation Scheme; and

(d) persons who have an entitlement to an associate benefit;

to be administered in accordance with the Deed:

(e) in relation to the period before 24 June 1995, by the Commonwealth Superannuation Board of Trustees No. 1; and

(f) in relation to the period from 24 June 1995 to 30 June 2006, by the PSS Board; and

(g) in relation to the period from 30 June 2006 to immediately before the commencement of the Governance of Australian Government Superannuation Schemes Act 2011, by the Australian Reward Investment Alliance (which, in this Deed, is called “the Board”); and

(h) in relation to the period immediately following the commencement of the Governance of Australian Government Superannuation Schemes Act 2011, by the Commonwealth Superannuation Corporation (CSC) as defined in the Governance of Australian Government Superannuation Schemes Act 2011 (in this Deed called “CSC”).

2.2 For the purposes of the Public Sector Superannuation Scheme there is hereby established and vested in CSC (formerly referred to as “the Board”) a fund to be known as the Superannuation Fund No. 1 and after 23 June 1995 to be known as the PSS Fund.

 

3

Functions and Powers of CSC

3.1 The functions of CSC in relation to the Public Sector Superannuation Scheme and the PSS Fund are to administer the scheme and to manage and invest the PSS Fund in accordance with the provisions of the Act and this Deed including, without limiting the generality of the foregoing the following functions:

(a) to pay benefits to or in respect of members, preserved benefit members and associates, and to make payments to and receive payments from the Commonwealth as provided for in the Act;

(b) to provide information about benefits or potential benefits, and available options, to:

 (i) members;

 (ii) preserved benefit members;

 (iii) associates; and

 (iv) potential members;

(c) to provide advice to the Minister on proposed changes to the Act and the Deed; and

(d) to determine interest rates for the purposes of the Public Sector Superannuation Scheme.

3.2 CSC has power in Australia and elsewhere to do all things necessary or convenient to be done for, or in connection with, the performance of its functions and, in particular, may:

(a) give guarantees;

(b) underwrite or sub-underwrite any form of investment including the underwriting or sub-underwriting of the issue of shares, debentures or units in a unit trust;

(c) borrow moneys and give security over the whole or any part of the assets of the PSS Fund;

(d) appoint agents and attorneys;

(e) act as agent for other persons;

(f) engage consultants and investment managers;

(g) engage a panel of persons to assist it in determining whether a person is to be retired on grounds of invalidity;

(h) establish a Reconsideration Advisory Committee or Committees to examine and report on decisions of CSC and its delegates under the Rules relating to entitlements to benefits of members, preserved benefit members and associates;

(i) effect policies with insurers in CSC’s name to provide additional death and invalidity cover for members as provided for in the Rules;

(j) take action to control or manage, or to enhance or protect, the value of, any investment made out of the PSS Fund, or to enhance or protect, the return on any such investment; and

(l) establish a trust for the purpose of investing the PSS Fund; and

(m) charge fees, costs and expenses in relation to the PSS Fund, including arrangements connected with members, former members and non-member spouses choosing particular investment strategies and arrangements connected with splitting of superannuation interests under the Family Law Act 1975, as provided for in the Rules.

3.2A In exercising its functions and powers CSC shall comply with the requirements of the Superannuation Industry (Supervision) Act 1993 and Regulations made under that Act, and have regard to the interests of members and their employers, preserved benefit members and associates.

3.3 Notwithstanding anything contained in the Deed, CSC shall, in exercising its functions and powers:

(a) act honestly in all matters concerning the Public Sector Superannuation Scheme and the PSS Fund;

(b) exercise, in relation to all matters affecting the Public Sector Superannuation Scheme and the PSS Fund, the same degree of care, skill and diligence as an ordinary prudent person would exercise in dealing with property of another for whom the person felt morally bound to provide;

(c) ensure that CSC’s duties and powers are performed and exercised in the best interests of members, preserved benefit members and associates;

(d) keep the money and other assets of the PSS Fund separate from any money and assets, respectively:

 (i) that are held by CSC in its own capacity or by the directors of CSC personally; or

(ii) that are money or assets, as the case may be, of a standard employer-sponsor, or an associate of a standard employer-sponsor, as defined in the Superannuation Industry (Supervision) Act 1993, of the PSS Fund;

(e) not enter into any contract, or do anything else, that would prevent CSC from, or hinder CSC in, properly performing or exercising CSC’s functions and powers;

(f) formulate and give effect to an investment strategy that has regard to the whole of the circumstances of the PSS Fund including, but not limited to, the following:

(i) the risk involved in making, holding and realising, and the likely return from, the PSS Funds investments having regard to its objectives and its expected cash flow requirements;

(ii) the composition of the PSS Funds investments as a whole including the extent to which the investments are diverse or involve the PSS Fund in being exposed to risks from inadequate diversification;

(iii) the liquidity of the PSS Funds investments having regard to its expected cash flow requirements;

(iv) the ability of the PSS Fund to discharge its existing and prospective liabilities;

(g) if there are any reserves of the PSS Fund formulate and to give effect to a strategy for their prudential management, consistent with the PSS Funds investment strategy and its capacity to discharge its liabilities (whether actual or contingent) as and when they fall due;

(h) allow a member or a person who has a preserved benefit access to any information or any documents prescribed in Regulations under the Corporations Act 2001.

3.4 CSC must cause proper records to be kept in respect of:

(a) contributions paid into the PSS Fund; and

(b) benefits paid under the Act and this Deed (whether out of the PSS Fund or out of the Consolidated Revenue Fund); and

(c) amounts that, under the Act and this Deed, are:

(i) paid out of the Consolidated Revenue Fund into the PSS Fund; or

(ii) paid out of the PSS Fund to the Commonwealth.

 

Clauses 4, 5, 6, 7, 8 and 8A deleted in the 35th amending deed.

 

9

Operation of the PSS Fund

9.1 All contributions and other moneys paid to CSC, or as directed by CSC, shall be held in trust by CSC in the PSS Fund. The PSS Fund shall be managed and invested by CSC in accordance with the Act and the Deed.

9.2 The PSS Fund shall comprise:

(a) contributions made by or on behalf of members;

(b) contributions made by employers pursuant to the Act and the Deed;

(c) any other moneys paid or transferred to CSC pursuant to the Act and the Deed or which become subject to the trusts of the Deed;

(d) the income arising from investments;

(e) any accretions to or profits on realisation of investments; and

(f) funded components of associate benefits.

9.3 The PSS Fund shall be used by CSC to pay benefits to or in respect of members and associates, and to pay the costs and expenses of the management and investment of the PSS Fund.

 

10

Investment of the PSS Fund

10.1 For the purposes of this clause:

(a) “invest” means expend moneys with a view to obtaining a present or future financial return (whether by way of income, profit or otherwise); and

(b) “profit” includes capital profit.

10.2 Moneys standing to the credit of the PSS Fund which are, in the opinion of CSC, moneys that are not for the time being required for the purpose of making payments out of the PSS Fund under the Act and the Deed shall, so far as is practicable, be invested by CSC in accordance with the Act and the Deed, but CSC shall so manage the PSS Fund that moneys that are from time to time required to pay benefits that are payable out of the PSS Fund are available for that purpose.

10.3 Moneys that, by virtue of subclause 10.2, are required to be invested by CSC may be invested in any manner and, without limiting the generality of the foregoing, may be invested by CSC jointly with another person or other persons.

10.4 CSC must determine an investment strategy and policy as soon as possible after 1 July 1990 and thereafter regularly review such a strategy and policy, and, where it considers necessary or desirable, change its existing investment strategy or policy. In determining and reviewing its investment strategy and policy, CSC shall consult with such persons or bodies as it thinks fit.

10.5 CSC shall invest moneys standing to the credit of the PSS Fund that are available for investment only through an investment manager or managers who undertake to invest, and manage the investment of those funds on behalf of CSC.

10.6 CSC shall ensure that any investment manager engaged by CSC:

(a) operates within the investment powers of CSC and the investment strategy and policy as determined for the time being by CSC; and

(b) reports to CSC on the state of CSCs investments and the investment market at such times and in such manner as CSC determines.

 

11

Requests by Minister for Information

11.1 CSC shall furnish to the Minister such information relating to the general administration and operation of the Public Sector Superannuation Scheme and the PSS Fund as the Minister may from time to time require.

 

12

Delegation by CSC

12.1 CSC may by an instrument under its seal delegate to:

(a) a director; or

(aa) a member of the staff of CSC; or

(b) the CEO of ComSuper; or

(c) a member of staff of ComSuper assisting the CEO in the performance of the CEO’s function; or

(d) an APS employee in the Department referred to in subclause 1.3(b); or

(e) an officer or employee of the person who is responsible for investing money forming part of a superannuation fund vested in or managed by CSC; or

(f) any other person who performs duties in connection with the operation of the Deed; or

(g) a committee consisting of 2 or more persons each of whom is a person referred to in any of the above paragraphs; or

(h) any other person;

all or any of its powers under the Deed other than its power to reconsider its own decisions or decisions made by its delegates.

12.2 CSC may by an instrument under its seal delegate to a Reconsideration Advisory Committee established under the Rules CSCs power to reconsider its own decision or a decision made by its delegate and to determine the matter by:

(a) affirming the decision under reconsideration; or

(b) varying the decision; or

(c) substituting another decision; or

(d) setting the decision aside;

and, at its discretion, refunding any fee paid.

12.3 If CSC delegates a power under subclause 12.1, other than paragraph (h), the delegate may, by writing, subdelegate the power:

(a) if the delegate is a director — to:

(i) another director; or

(ii) a person referred to in paragraph 12.1(aa), (b), (c), (d), (e) or (f); or

(b) if the delegate is the CEO of ComSuper to a person referred to in paragraph 12.1(c), (d), (e) or (f); or

(c) if the delegate is a person referred to in paragraph 12.1(aa), (c), (d), (e) or (f) — to:

(i) another person referred to in the same paragraph; or

(ii) a person referred to in another of those paragraphs.

12.4 Section 34AA and paragraphs 34AB(a), (b) and (d) of the Acts Interpretation Act 1901 apply in relation to a sub-delegation in a corresponding way to the way in which they apply to a delegation.

12.5 Section 34A and paragraphs 34AB(c) and (d) of the Acts Interpretation Act 1901 apply in relation to a sub-delegation as if it were a delegation.

 

13

Delegations by the Finance Minister

13.1 The Finance Minister may by signed instrument delegate all or any of his or her powers under the Deed, other than this power of delegation, to:

(a) CSC; or

(b) an APS employee in the Department referred to in subclause 1.3(b); or

(c) the CEO of ComSuper or a member of the staff assisting the CEO of ComSuper in the performance of his or her functions.

IN WITNESS whereof the Honourable Ralph Willis, Minister for Finance, has hereunto set the name of The Commonwealth of Australia and affixed his own seal the day and the year first above written.

THE SCHEDULE

RULES FOR THE ADMINISTRATION OF THE SUPERANNUATION SCHEME

TABLE OF PROVISIONS

Rule

Description

Page Number

 

 

 

 

Part 1 — Introduction

 

 

 

 

 

Division 1 — Understanding these Rules

 

 

 

 

1.1.1

Structure of the Rules

1-1

 

 

 

 

Division 2 — Words and Phrases Used in these Rules

 

 

 

 

1.2.1

Explanations of certain words and phrases

1-4

1.2.3

Minister may make determinations of basic salary and recognised allowances

1-24

1.2.4

Members to whom a determination applies

1-24

 

 

 

 

Part 2 — Membership

 

 

 

 

 

Division 1 — Membership

 

 

 

 

2.1.1

Becoming a member

2-1

2.1.2

Types of members

2-1

2.1.4

Concurrent memberships

2-2

2.1.6

Preserved benefit members

2-2

2.1.8

Choosing to cease PSS membership

2-3

 

 

 

 

Division 2 — Continuation of Membership

 

 

 

 

2.2.1

Unsuccessful candidates at Parliamentary elections

2-4

2.2.4

Member re-instated

2-4

 

 

 

 

Part 3 — Salary for Superannuation Purposes

 

 

 

 

 

Division 1 — Contribution Salary — Regular Members

 

 

 

 

3.1.1

Fortnightly contribution salary

3-1

3.1.2

Definitions of ACS and Factor

3-1

 

 

 

 

Division 2 — Contribution Salary — Casual Members

 

 

 

 

3.2.1

Fortnightly contribution salary

3-5

 

 

 

 

Division 3 — Maintained Salary — Regular Members

 

 

 

 

3.3.1

When applicable

3-6

3.3.2

Maintained salary reduction occurred before 1 July 2003

3-6

3.3.3

Maintained salary reduction occurred after 30 June 2003

3-7

 

 

 

 

Division 4 — CSS Salary

 

 

 

 

3.4.1

When applicable

3-9

3.4.3

Rate of CSS Salary

3-9

 

 

 

 

Division 5 — Average Salary — Regular Members

 

 

 

 

3.5.1

Average Salary

3-10

3.5.2

Salary for average salary purposes

3-13

3.5.3

CSC may use alternative salary for average salary purposes

3-14

3.5.4

When last day of membership counts as a birthday

3-14

3.5.5

Birthdays and salary when a member of the CSS scheme

3-14

3.5.6

Leap year birthdays

3-15

 

 

 

 

Division 6 — Average Salary — Casual Members

 

 

 

 

3.6.1

Average salary birthdays

3-16

3.6.2

Casual members not paid on a per diem basis salary for average salary purposes

3-16

3.6.3

Casual members paid on a per diem basis  salary for average salary purposes

3-17

3.6.4

CSC may use alternative salary for average salary purposes

3-18

3.6.5

When last day of membership counts as a birthday

3-18

3.6.6

Birthdays and salary when a member of the CSS scheme

3-18

3.6.7

Leap year birthdays

3-18

 

 

 

 

Part 4 — Contributions

 

 

 

 

 

Division 1 — Contributions by Members

 

 

 

 

4.1.1

When contributions must be made

4-1

4.1.2

What rate of contributions can be paid

4-1

4.1.5

Contributions not allowed to be paid

4-3

4.1.6

Contributions to be paid to CSC

4-3

4.1.7

Substitution of contribution days

4-3

4.1.8

CSC to allow members to choose a contribution rate for arrears in certain circumstances

4-3

4.1.9

Transitional arrangements for members who were maximum benefits members immediately before 1 January 2008

4-4

4.1.10

Transitional arrangements for members who reached age 70 before 1 July 2011

4-4

 

 

 

 

Division 2 — Contributions on Leave Without Pay

 

 

 

 

4.2.1

When contributions are payable on leave without pay

4-5

4.2.2

Rates of contributions payable on leave without pay

4-6

4.2.4

Maternity and parental leave without pay — contributions are optional

4-7

4.2.5

Special arrangements for contributions on leave without pay or less than full pay

4-7

4.2.6

Re-instatement of certain members

4-7

4.2.7

Leave without pay savings provisions

4-8

 

 

 

 

Division 3 — Productivity Contributions by Employers

 

 

 

 

4.3.1

When are productivity contributions payable

4-10

4.3.2

Amount of productivity contributions

4-10

4.3.5

Regular member now — regular member last birthday

4-11

4.3.6

Regular member now — casual employee last birthday

4-13

4.3.7

Casual member now

4-14

4.3.11

Contributions to be paid to CSC

4-15

 

 

 

 

Part 5 — Benefits

 

 

 

 

 

Division 1 — Benefit Accruals

 

 

 

 

5.1.1

Member’s benefit accruals

5-1

5.1.3

Former member’s benefit accruals

5-1

5.1.6

Adjustment of benefit accruals where substituted contribution days apply

5-2

 

 

 

 

Division 2 — Benefit Accrual Multiples — Regular Members

 

 

 

 

5.2.1

Calculating benefit accrual multiples

5-3

5.2.2

On-going Multiple

5-3

5.2.3

Fortnightly contribution accrual

5-4

5.2.4

Average accrual

5-5

5.2.10

Additional Cover Multiple

5-7

5.2.12

Preserved Multiple

5-7

5.2.14

Restoration Multiple

5-8

5.2.16

Excess Contribution Multiple

5-8

5.2.18

Unfunded Transfer Multiple

5-9

5.2.20

Membership Transfer Multiple

5-9

5.2.22

CSS Transfer Multiple

5-9

5.2.23

Non-Cash Transfer Multiple

5-9

5.2.26

Reduction Multiple

5-10

5.2.27

Former MBL Multiple

5-10

 

 

 

 

Division 3 — Benefit Accrual Multiples — Casual Members

 

 

 

 

5.3.1

Calculating benefit accrual multiples

5-11

5.3.2

On-going Multiple

5-11

5.3.3

Fortnightly contribution accrual

5-12

5.3.4

Average accrual

5-12

5.3.10

Additional Cover Multiple

5-14

5.3.12

Preserved Multiple

5-14

5.3.14

Restoration Multiple

5-15

5.3.16

Excess Contribution Multiple

5-15

5.3.18

Unfunded Transfer Multiple

5-16

5.3.20

Membership Transfer Multiple

5-16

5.3.22

CSS Transfer Multiple

5-16

5.3.23

Non-Cash Transfer Multiple

5-16

5.3.26

Reduction Multiple

5-17

5.3.27

Former MBL Multiple

5-17

 

 

 

 

Division 4 — Invalidity Multiples — Regular Members

 

 

 

 

5.4.1

Invalidity Multiple

5-18

 

 

 

 

Division 5 — Invalidity Multiples — Casual Members

 

 

 

 

5.5.1

Invalidity Multiple

5-21

 

 

 

 

Division 6 — Maximum Benefits

 

 

 

 

5.6.1

Becoming a maximum benefits member

5-24

5.6.2

Calculating maximum benefits in certain other cases

5-25

5.6.5

Changes in the maximum benefits table

5-25

5.6.6

Reduction Multiple to be disregarded in certain cases

5-26

5.6.7

Special Arrangements for members who are maximum benefits members immediately before 1 January 2008

5-26

 

 

 

 

Division 7 — Australian Federal Police Maximum Benefits

 

 

 

 

5.7.1

Maximum benefits where adjustment payment received

5-28

5.7.2

Maximum benefits where adjustment payment received — pension taken

5-29

5.7.3

Maximum benefits where adjustment payment received — invalidity pensioner

5-29

5.7.4

Maximum benefits where adjustment payment received 
death

5-30

5.7.5

Maximum benefits where adjustment payment received — low salary, invalidity or death

5-30

5.7.6

Maximum benefits where adjustment payment received — preserved benefit

5-31

5.7.7

Changes in the maximum benefits table

5-32

5.7.8

Reduction Multiple to be disregarded in certain cases

5-32

 

 

 

 

Part 6 — Member’s Benefit Options

 

 

 

 

 

Division 1 — Resignation, etc — Benefit Options

 

 

 

 

6.1.1

Benefit options

6-1

 

 

 

 

Division 2 — Voluntary Retirement, etc 
After Minimum Retiring Age

 

 

 

 

6.2.1

Normal benefit options

6-3

6.2.3

Benefit options — certain other cases

6-4

 

 

 

 

Division 3 — Involuntary Retirement Benefit Options

 

 

 

 

6.3.1

Benefit options — before minimum retiring age

6-6

6.3.3

Benefit options — after minimum retiring age

6-7

 

Division 4 — Eligibility of Fixed-term Employees for Involuntary Retirement Benefits

 

 

 

 

6.4.1

Eligibility for involuntary retirement benefit — appointment or employment not renewed

6-9

6.4.4

Eligibility for involuntary retirement benefit where appointment is terminated

6-11

6.4.5

Date of cessation in certain circumstances

6-11

6.4.7

Other provisions

6-12

6.4.9

Savings provisions

6-12

 

 

 

 

Division 5 — Invalidity Retirement Benefit Options

 

 

 

 

6.5.1

Benefit options — before age 60

6-13

6.5.2

Benefit options — after age 60

6-13

6.5.3

Benefit option — limited benefits member

6-13

 

 

 

 

Division 6 Sale or Transfer of Assets Benefit Options

 

 

 

 

6.6.1

Benefit options — PSS membership continues

6-14

6.6.2

Benefit options — PSS membership ceases

6-14

6.6.3

Benefit options Continues in employment, but does not change employer

6-14

6.6.4

Benefit options Involuntary retirement before 1 July 2000

6-15

6.6.5

Benefit options Circumstances other than on involuntary retirement, and involuntary retirement on or after 1 July 2000

6-16

 

 

 

 

Division 8 — Transfers to Other Superannuation Schemes

 

 

 

 

6.8.1

Agreements relating to eligible superannuation schemes

6-19

6.8.5

Savings provisions

6-20

6.8.6

Transfer to an eligible superannuation scheme — member

6-20

6.8.7

Transfer to an eligible superannuation scheme preserved benefit member

6-20

6.8.8

Conditions of transfer to an eligible superannuation scheme

6-20

6.8.10

Joining an approved superannuation scheme

6-21

6.8.11

Joining an authorised superannuation scheme

6-21

6.8.12

CSC may replace an eligible superannuation scheme that has ceased to exist

6-22

 

 

 

 

Division 9 — Treatment of Excess Contribution Multiples

 

 

 

 

6.9.1

When Excess Contribution Multiple included in the benefit accrual multiple

6-24

6.9.3

When all or part of an Excess Contribution Multiple refunded

6-24

6.9.6

Effect of lump sum on accumulated member contributions and maximum benefit status

6-24

 

 

 

 

Division 10 Benefit options on choosing to cease to be a member

 

 

 

 

6.10.1

Benefits options on choosing to cease to be a member

6-26

 

 

 

 

Part 7 — Death Benefits

 

 

 

 

 

Division 1 — Death of a Member

 

 

 

 

7.1.1

Spouse’s benefit options — with or without eligible children

7-1

7.1.3

Children eligible for benefit — not living with spouse or
where there is no spouse

7-2

7.1.5

No spouse or eligible or partially dependent children

7-2

 

 

 

 

Division 2 — Death of a Limited Benefits Member

 

 

 

 

7.2.1

Spouse’s benefit options — with or without children

7-4

7.2.2

Children eligible for benefit — not living with spouse or where there is no spouse

7-4

7.2.4

No spouse or eligible or partially dependent children

7-4

 

 

 

 

Division 3 — Death of a Pensioner

 

 

 

 

7.3.1

Pensioner survived by a spouse and/or children eligible for benefits

7-5

7.3.3

Pensioner not survived by eligible dependents, or no further benefits payable

7-5

7.3.7

Death of a spouse in receipt of pension who is survived by children

7-6

 

 

 

 

Division 4 — Death of a Preserved Benefit Member

 

 

 

 

7.4.1

Spouse’s benefit options — with or without children

7-7

7.4.5

Children’s benefit not living with spouse or where there is no spouse

7-8

7.4.7

No spouse or children entitled to benefits

7-8

 

 

 

 

Part 8 — Preserved Benefits

 

 

 

 

 

Division 1 Access to the Full Amount of a Preserved Benefit

 

 

 

 

8.1.1

When a preserved benefit becomes payable

8-1

8.1.3

Amount of preserved benefit

8-2

 

 

 

 

Division 2 — Benefit Options Relating to Preserved Benefits

 

 

 

 

8.2.1

Benefit options — on reaching certain ages

8-3

8.2.2

Benefit options — on invalidity

8-3

8.2.3

Benefit options  on death of a preserved benefit member

8-3

8.2.4

No benefit option — departed temporary resident

8-4

8.2.5

Transitional benefit options for certain pre-1 July 1996 preserved benefits members

8-4

 

 

 

 

Division 3 — Early Access to Part of a Preserved Benefit

 

 

 

 

8.3.1

Access to accumulated member contributions

8-5

8.3.3

Access to accumulated productivity contributions application before 1 July 1997

8-6

8.3.4

Transitional arrangements for certain pre-1 July 1996 preserved benefit members

8-6

8.3.5

Access to all or part of preserved benefit application after 30 June 1997

8-6

8.3.7

Further payments

8-7

 

 

 

 

Division 4 — Early Access to Preserved Benefit on Involuntary Retirement after Sale or Transfer of Assets

 

 

 

 

8.4.1

Benefit options for certain preserved benefit members on subsequent retrenchment

8-8

8.4.2

Benefit options on retrenchment before 1 July 2000 and before minimum retiring age

8-8

8.4.3

Benefit options on retrenchment on or after 1 July 2000 and before minimum retiring age

8-9

8.4.4

Benefit options on retrenchment after minimum retiring age

8-9

 

 

 

 

Division 5 Cessation of Preserved Benefits

 

 

 

 

8.5.1

Preserved benefit ceases to be applicable

8-11

8.5.2

Application for invalidity benefits

8-11

8.5.4

Application by a preserved benefit member for a Membership Transfer Multiple

8-11

8.5.5

CSC may apply a Membership Transfer Multiple in certain cases

8-12

8.5.6

Combining preserved benefits

8-12

 

 

 

 

Division 6 Preserved Benefit Increases

 

 

 

 

8.6.1

Funded preserved benefit increases

8-13

8.6.2

Unfunded preserved benefit increases

8-13

 

 

 

 

Part 9 — Pension Payments

 

 

 

 

 

Division 1 — When Pensions are Paid

 

 

 

 

9.1.1

Payment of former member and reversionary pensions

9-1

9.1.2

Payment of partial invalidity pensions

9-1

9.1.4

Fortnightly instalments of pension

9-1

 

Division 2 — Calculating Retirement and Preserved Benefit Pensions

 

 

 

 

9.2.1

Calculating age, involuntary and sale or transfer retirement pensions

9-2

9.2.3

Calculating invalidity pensions

9-3

9.2.6

Calculating preserved benefit pensions

9-3

 

 

 

 

Division 3 — Calculating Pensions Payable on Death

 

 

 

 

9.3.1

Percentage rate of pension according to relationship(s) and choice of Reduced Pension

9-5

9.3.2

Calculating pensions following the death of a member

9-5

9.3.4

Conversion of pension to lump sum by spouse

9-6

9.3.5

Calculating pensions following the death of a pensioner

9-6

9.3.8

Calculating pensions for a partially dependant child or children

9-8

9.3.9

Calculating pensions following the death of a preserved benefit member

9-8

9.3.10

Calculating children’s pensions following the death of a spouse in receipt of pension

9-8

9.3.11

Reduced reversionary pension following the death of a pensioner

9-9

 

 

 

 

Division 4 — Apportioning Pensions

 

 

 

 

9.4.1

Apportioning pensions

9-11

9.4.2

Re-apportioning pensions in special circumstances

9-11

 

 

 

 

Division 5 — Adjusting Pensions — Number of Beneficiaries Changes

 

 

 

 

9.5.1

Adjusting spouse’s pension when a child ceases to be eligible

9-12

9.5.2

Adjusting children’s pension where a child ceases to be eligible

9-12

9.5.3

Adjusting partially dependent children’s pension

9-13

9.5.4

Adjusting pensions where additional dependants commence
to be eligible

9-13

9.5.5

Final benefits when no remaining eligible beneficiaries

9-13

 

 

 

 

Division 6 — Pension Increases

 

 

 

 

9.6.1

Calculating July pension increases

9-14

9.6.3

Calculating January pension increases

9-15

9.6.5

Adjusting partial invalidity pensions

9-15

 

 

 

 

Part 10 — Medical and Invalidity Matters

 

 

 

 

 

Division 1 — New Members’ State of Health

 

 

 

 

10.1.1

Assessing new members’ state of health

10-1

 

 

 

 

Division 2 — Limited Benefits Membership

 

 

 

 

10.2.1

Member becoming a limited benefits member

10-2

10.2.2

Period of limited benefits membership

10-2

10.2.3

Notification of limited benefits membership

10-2

10.2.5

Failure to meet requirements of CSC

10-3

 

 

 

 

Division 3 — Additional Death and Invalidity Cover

 

 

 

 

10.3.1

CSC to arrange policy

10-4

10.3.2

Applying for additional death and invalidity cover

10-4

10.3.5

Advice to CSC and member

10-4

10.3.6

Variation of additional death and invalidity cover

10-4

10.3.8

Maximum amount of additional death and invalidity cover

10-5

10.3.10

Cessation of additional death and invalidity cover

10-5

10.3.11

Claims by CSC

10-6

 

 

 

 

Division 4 — Additional Cover Premiums

 

 

 

 

10.4.1

Additional cover premiums by members

10-7

10.4.3

Additional cover premiums by employers

10-7

10.4.4

CSC to advise additional cover premium rates

10-7

10.4.5

Payment of additional cover premiums

10-8

 

 

 

 

Division 5 — Partial Invalidity Pensions

 

 

 

 

10.5.1

Entitlement to partial invalidity pension

10-9

10.5.2

Partial invalidity pension under the Superannuation Act 1976

10-9

10.5.3

Former invalidity pensioner again becoming a member

10-9

10.5.5

Former invalidity pensioner — salary not decreased or CSC not wholly satisfied

10-10

10.5.7

Regular member — salary decreased for health reasons

10-10

10.5.9

Regular member — salary not decreased or CSC not wholly satisfied

10-11

10.5.11

Adjustment of partial invalidity pensions

10-12

10.5.13

Partial invalidity pension previously payable under the Superannuation Act 1976

10-13

10.5.14

Non payment when CSC requirements not met

10-13

10.5.17

Suspension of partial invalidity pension payments

10-13

10.5.18

Cessation of partial invalidity pension payments

10-14

 

 

 

 

Division 6 — Invalidity Assessment Panels

 

 

 

 

10.6.1

Establishing Assessments Panels

10-15

10.6.3

CSC responsibilities to Assessment Panel

10-15

10.6.4

Role of an Assessment Panel

10-15

 

 

 

 

Division 7 — Invalidity Retirement Process

 

 

 

 

10.7.1

Clear entitlement to invalidity benefits

10-18

10.7.2

Reasonable doubt regarding entitlement to invalidity benefits

10-18

10.7.6

Deferral of decisions

10-19

10.7.7

Decision to be advised to member and employer

10-19

 

 

 

 

Division 8 — Payment of Preserved Benefits on Invalidity

 

 

 

 

10.8.1

Clear entitlement to invalidity benefits

10-20

10.8.2

Reasonable doubt regarding entitlement to invalidity retirement benefits

10-20

10.8.4

Decision to be advised to former member

10-20

 

 

 

 

Division 8A — Payment of Associate Preserved Benefits on Invalidity

 

 

 

 

10.8A.1

Clear entitlement to invalidity benefits

10-21

10.8A.2

Reasonable doubt regarding entitlement to associate preserved benefits

10-21

10.8A.4

Decision to be advised to associate

10-21

 

 

 

 

Division 9 — Deemed Invalidity Retirement Process

 

 

 

 

10.9.1

Clear entitlement to invalidity benefits

10-22

10.9.2

Reasonable doubt regarding entitlement to invalidity retirement benefits

10-22

 

 

 

 

Division 10 — Pre-Assessment Payments

 

 

 

 

10.10.1

Entitlement to pre-assessment payments

10-23

10.10.6

Rate of pre-assessment payments — first 6 months

10-23

10.10.8

Rate of pre-assessment payments after first 6 months

10-24

10.10.9

Period pre-assessment payments to be made

10-24

 

 

 

 

Division 11 — Reduction or Suspension of Invalidity Pension

 

 

 

 

10.11.1

Invalidity pensioner to provide information

10-26

10.11.5

Suspension due to failure to provide information

10-26

10.11.8

Cancellation of suspended pension

10-27

10.11.9

Invalidity pension rate to be reduced or suspended

10-27

 

 

 

 

Division 12 — Non-disclosure of Information

 

 

 

 

10.12.1

Non-disclosure by member

10-30

10.12.2

Non-disclosure by former member

10-30

10.12.3

Notification of limited benefits membership

10-31

 

 

 

 

Part 11 — Additional Accumulations

 

 

 

 

 

Division 1 — Transfers into the PSS Scheme

 

 

 

 

11.1.1

Amounts that may be transferred

11-1

11.1.2

Payments in respect of performance pay or productivity contributions

11-1

11.1.3

Payments to be paid into the PSS Fund

11-1

11.1.4

Accumulation of transfer amount and preserved amount

11-1

 

 

 

 

Division 2 — Transfer Amounts — Benefits where
transfer amount paid in after 31 December 1995

 

 

 

 

11.2.1

Benefit entitlement on cessation

11-3

11.2.3

Payment of accumulated transfer amount prior to cessation

11-3

11.2.4

Payment of preserved accumulated transfer amount

11-3

11.2.4C

Fees for payment of accumulated transfer amounts

11-4

11.2.5

Payment of accumulated transfer amount in relation to a release authority

11-4

 

 

 

 

Division 3 — Transfer Amounts — Benefits where
transfer amount paid in before 1 January 1996

 

 

 

 

11.3.1

Benefit entitlement on cessation

11-5

11.3.4

Member on leave without pay on 31 December 1995, etc

11-6

11.3.5

Pension benefits

11-6

11.3.7

Lump sum benefits

11-7

11.3.8

Invalidity benefits

11-7

11.3.10

Maximum benefits

11-78

11.3.12

Payment of preserved benefits to former member

11-9

11.3.16

Benefits on death of member

11-10

11.3.22

Benefits on death — preserved benefits

11-11

11.3.25

Benefits on death of pensioner

11-11

11.3.26

Benefits on death — additional reversionary pension not payable

11-11

 

 

 

 

Division 4 — Additional contributions after age 70 before
1 July 2011

 

 

 

 

11.4.1

When additional contributions may be made

11-14

11.4.3

What rate of additional contributions can be paid

11-14

11.4.5

Additional contributions not allowed to be paid

11-14

11.4.6

Additional contributions to be paid to CSC

11-14

11.4.7

Substitution of contribution days

11-14

11.4.8

Accumulation of additional contributions and preserved additional contributions

11-14

11.4.9

Benefit entitlement on cessation

11-15

11.4.10A

Roll-over of Accumulated Additional Contributions

11.15

11.4.11

Payment of Accumulated Additional Contributions in relation to a release authority

11-15

 

 

 

 

Division 5 — Benefits where performance pay or
productivity contributions are transferred

 

 

 

 

11.5.1

Benefit entitlement on cessation  performance pay or productivity contributions

11-16

11.5.3

Payment of preserved accumulated transfer amount performance pay or productivity contributions

11-16

11.5.4

Employer component of preserved benefits to be preserved

11-16

11.5.5

Payment of accumulated transfer amount in relation to a release authority

11-16

 

 

 

 

Part 12 — General Benefit Provisions

 

 

 

 

 

Division 1 Choosing Benefit Options

 

 

 

 

12.1.1

When a benefit option may be chosen

12-1

12.1.2

Who can choose on behalf of a member or a child etc

12-1

12.1.4

Changing a benefit option choice

12-2

12.1.6

Cancelling a commutation election

12-2

 

 

 

 

Division 2 Board’s Powers Relating to Benefits

 

 

 

 

12.2.1

Benefits in unusual circumstances

12-3

12.2.1A

Transitional arrangements for benefits in relation to members
who were maximum benefits members immediately before
1 January 2008

12-3

12.2.2

Paying benefits to legal personal representative

12-3

12.2.3

Payment of benefits to eligible roll-over fund where no instructions

12-3

12.2.4

Payment of unclaimed benefits to Commissioner of Taxation or relevant authority

12-4

12.2.5

Withholding benefits

12-4

12.2.6

CSC may determine break-up of part payments

12-4

12.2.7

Application of the Superannuation Contributions Tax

12-4

 

 

 

 

Division 3 — Additional Interest

 

 

 

 

12.3.1

Additional interest for late payment

12-6

12.3.2

CSC to decide interest rates, etc

12-6

12.3.3

Additional interest to form part of benefit

12-6

 

 

 

 

Division 4 Early Release to Members of Benefits on Severe Financial Hardship and Compassionate Grounds

 

 

 

 

12.4.1

A member may obtain early release of benefits on grounds of severe financial hardship or compassionate grounds

12-7

12.4.3

Early release lump sum must not exceed available early release amount

12-7

12.4.4

Preserved benefits and early release

12-7

12.4.5

Final benefits must be reduced to take account of early release

12-7

12.4.8

Amounts payable to Commonwealth to take into account amounts paid on early release

12-8

 

Part 13 Review of Decisions

 

 

 

 

 

Division 1 Reconsideration Advisory Committees

 

 

 

 

13.1.1

Establishing Reconsideration Advisory Committees

13-1

13.1.3

CSC responsibilities to Reconsideration Advisory Committees

13-1

13.1.4

Recommendation by Reconsideration Advisory Committees

13-1

 

 

 

 

Division 2 Reconsidering Delegate’s Decisions

 

 

 

 

13.2.1

Request for reconsideration

13-2

13.2.3

Reconsideration of decision of delegate

13-2

13.2.4

Decision to be notified to affected person

13-2

 

 

 

 

Division 3 Reconsidering CSC Decisions

 

 

 

 

13.3.1

Request for reconsideration

13-3

13.3.4

Clear decision in favour of person

13-3

13.3.5

Invalidity Assessment Panel involved in original decision

13-3

13.3.7

Reconsideration of decision of CSC

13-4

13.3.8

Decision to be notified to affected person

13-4

 

 

 

 

Division 4 CSC Initiated Reconsiderations

 

 

 

 

13.4.1

CSC may initiate a reconsideration of a decision

13-5

 

 

 

 

Part 14 — CSS Transferees

 

 

 

 

 

Division 1 — Commencement of Membership

 

 

 

 

14.1.1

Day on which membership commences

14-1

14.1.2

Election and declaration under the Superannuation Act 1976

14-3

 

 

 

 

Division 2 — CSS Transfer Multiples

 

 

 

 

14.2.1

Entitlement to CSS Transfer Multiple

14-4

14.2.2

Calculation of a CSS Transfer Multiple

14-4

14.2.3

Primary element of CSS Transfer Multiple

14-4

14.2.5

Accrual element of CSS Transfer Multiple

14-7

14.2.6

Additional Accruals

14-8

 

 

 

 

Division 3 — Maximum Benefits

 

 

 

 

14.3.1

Calculating maximum benefits for certain CSS transferees

14-9

 

 

 

 

Division 4 — Contribution Matters

 

 

 

 

14.4.1

CSS contributions to count as member contributions

14-10

14.4.2

Contribution days to count

14-10

14.4.3

Contribution due days to count

14-10

14.4.4

Default rate of contributions

14-10

 

 

 

 

Part 15 — Commutation of pension:
payment of surcharge liability

 

 

 

 

 

Division 1 — Commutation of former member’s pension

 

 

 

 

15.1.1

Election

15-1

15.1.3

Surcharge Commutation Amount

15-1

15.1.4

Entitlement to lump sum benefit

15-1

15.1.6

Reduction of pension

15-2

15.1.7

One election per assessment

15-2

15.1.8

Elections made before the first pension payday in a financial year

15-2

15.1.9

Conversion factor in relation to Surcharge Commutation Amount

15-2

 

 

 

 

 

 

 

 

 

 

Division 2 — Commutation of spouse’s pension

 

 

 

 

15.2.1

Election

15-3

15.2.3

Surcharge Commutation Amount

15-3

15.2.4

Entitlement to lump sum benefit

15-3

15.2.6

Reduction of pension

15-4

15.2.7

One election per assessment

15-4

15.2.8

Elections made before the first pension payday in a financial year

15-4

15.2.9

Part of pension

15-4

15.2.10

Method for reduction of spouse’s pension in relation to Surcharge Commutation Amount

15-4

 

 

 

 

Division 3 — Commutation of child’s pension

 

 

 

 

15.3.1

Election

15-5

15.3.3

Surcharge Commutation Amount

15-5

15.3.4

Entitlement to lump sum benefit

15-5

15.3.6

Reduction of pension

15-6

15.3.7

One election per assessment

15-6

15.3.8

Elections made before the first pension payday in a financial year

15-6

15.3.9

Part of pension

15-6

15.3.10

Method for reducing pension in relation to Surcharge Commutation Amount

15-6

 

 

 

 

Part 16 — Family Law Superannuation Splitting

 

 

 

 

 

Division 1 — Words and Phrases Used in this Part

 

 

 

 

16.1.1

Explanation of certain words and phrases

16-1

 

 

 

 

Division 2 — Benefits for non-member spouse  associate pension or preserved benefit

 

 

 

 

16.2.1

Associate pension or preserved benefit for non-member spouse

16-5

16.2.3

Associate pension for non-member spouse if operative time in payment phase

16-7

16.2.9

Associate preserved benefit if operative time in growth phase

16-8

 

 

 

 

Division 3 — Benefits for non-member spouse — associate preserved benefit

 

 

 

 

16.3.1

Associate preserved benefit

16-9

16.3.4

Benefit options — on reaching certain ages

16-11

16.3.6

Benefit options — terminal medical condition or incapacity

16-12

16.3.8

Payment of lump sum on death of a non-member spouse

16-13

16.3.9

Payment of lump sum — departed temporary resident

16-13

16.3.10

Access to all or part of associate preserved benefit

16-13

16.3.13

Payment of amounts by CSC to the Commonwealth

16-13

 

 

 

 

Division 4 — Reduction of benefits for member spouse — operative time during growth phase

 

 

 

 

16.4.1

Operative time during growth phase — reduction of benefits

16-14

16.4.2

Reduction of accumulated contributions etc

16-14

16.4.3

Reduction of benefit multiple where member spouse not a preserved benefit member

16-14

16.4.4

Reduction of maximum benefits on cessation of membership

16-14

16.4.5

Reduction of unfunded preserved benefit where member spouse is a preserved benefit member

16-15

16.4.6

Reduction not to affect later non-standard pension

16-15

 

 

 

 

Division 5 — Reduction of benefits for member spouse operative time during growth phase reduction where original interest is entitlement to associate preserved benefit

 

 

 

 

16.5.1

Operative time during growth phase — reduction where original interest is entitlement to associate preserved benefit

16-16

 

 

 

 

 

 

 

 

 

 

Division 6 — Reduction of benefits for member spouse — operative time during payments phase — reduction of pension

 

 

 

 

16.6.1

Operative time during payment phase — reduction of pension

16-17

 

 

 

 

Division 7 — Pension factor tables

 

 

 

 

 

Division 8 — Methods and Factors used to determine scheme value in relation to member spouse

 

 

 

 

16.8.1

Member

16-26

16.8.2

Preserved benefit member eligible for benefit under paragraph 8.2.1(A)

16-27

16.8.3

Preserved benefit member not eligible for benefit under paragraph 8.2.1(A)

16-28

16.8.4

Associate

16-29

16.8.5

Pensioner

16-29

16.8.6

Tables of valuation factors

16-31

 

 

 

 

Part 17 Release of Benefits: Payment of a Deferred Tax Liability

 

 

 

 

 

Division 1 Release of Benefits to Meet a Deferred Tax Liability

 

 

 

 

17.1.1

Release of benefits under a release authority

17-1

17.1.2

Election specifying which benefit is to be reduced

17-1

17.1.4

Limit on amount that may be released

17-2

17.1.6

Amount that may be released

17-2

 

 

 

 

 

Part 1 — INTRODUCTION

Division 1

Structure of the Rules

1.1.1 These Rules have been divided into 16 Parts, each dealing with a major aspect of the operation of the PSS scheme.

 

Guide to the 16 Parts of the Rules

Part

     Title

Deals With

1

Introduction

The structure of the Rules and defines special terms and phrases, and some concepts, used in the Rules.

2

Membership

How you become a member of the PSS scheme and what the different types of members are.

3

Annual Salary

The different forms of salary used to determine the amount of contributions paid and benefits received.

4

Contributions

When and how much contributions are paid by members, when they cannot be paid and when they are optional. Also deals with employer, or productivity, contributions.

5

Benefits

How to calculate a members benefit

6

Members Benefit Options

When and how a members benefit can be taken which varies depending on the reason for ceasing membership.

7

Death Benefit Options

When and how beneficiaries or legal representatives can receive a deceased members benefit or any residual benefit following the death of a PSS pensioner or former member.

8

Preserved Benefits

When and how benefits that have been compulsorily or optionally preserved in the PSS scheme can be taken. Also covers preserved benefit increases.

9

Pensions

Converting benefits into pensions, especially how to work out pensions where independent beneficiaries are concerned. Also  covers pension increases.

10

Medical and Invalidity Matters

Medical type issues of the PSS scheme including entry medical standards, limited benefits membership, additional medical cover, partial invalidity pensions and the invalidity retirement process.

11

Additional Accumulations

How amounts transferred to the PSS scheme accumulate over time and the options for payment of those amounts on ceasing membership.

12

General Benefit Provisions

General conditions relating to, among others, making and changing benefit choices, beneficiaries and additional interest for late payment

13

Review of Decisions

The internal review mechanisms available to have a decision of CSC or its delegate reconsidered.

14

CSS Transferees

The carry-over rights of members who transferred to the PSS scheme from the old Commonwealth Superannuation Scheme in relation to salary and contributions.

15

Commutation of pension:  Payment of Surcharge Liability

Allowing a person who receives a surcharge assessment while in receipt of pension to commute that pension to pay the surcharge liability to the ATO.

16

Family Law Superannuation Splitting

The creation of a separate interest in the PSS for a non-member spouse and subsequent reduction of the benefit of a member spouse following the receipt of an agreement or court order as a result of Family Law actions.

1.1.2 Each Part is further divided into Divisions addressing unique groupings within the Part and each Division is made up of Rules containing specific provisions; Rules do not necessarily have their own Rule headings.

1.1.3 The Rules have been numbered so that the first number refers to the Part number, the second refers to the Division number within that Part and the third to the Rule number within that Division. For example, Rule 6.3.2 is the second Rule in Division 3 of Part 6 of the Rules.

1.1.4 There are several notes, diagrams and guides within the Rules to help you understand the more complicated superannuation concepts or to warn you if you need to also look in another area of the Rules. However, these aids (including Part, Division and Rule headings) do not form part of the Rules.

1.1.5 Tables on the other hand form part of the Rules and are used to provide factors or other similar information. Examples also form part of the Rules and have been included to demonstrate a practical application of a particular rule or the combined effect of a particular Division or Part.

test1

 

Division 2

Explanations of certain words and phrases

1.2.1 Because some words and phrases have a special meaning when used in these Rules they have been explained below. They appear throughout the Rules in bold print to remind you they have a special meaning.

 

accumulated funded in relation to a member or a preserved benefit member means

productivity contributions the sum of:

 accumulated funded productivity contributions are to be taken to be accumulated funded employer contributions for the purposes of the definition of accumulated funded contributions in Section 3 of the Superannuation Act 1990.

 

accumulated member in relation to a member or a preserved benefit member, means

contributions the sum of the following cumulative amounts taking into account  any reductions that apply under rule 16.4.2(a):

 (a) the cumulative amounts are:

 

accumulated productivity in relation to a member or a preserved benefit member, means

contributions the sum of the accumulated funded productivity contributions                and the accumulated unfunded productivity contributions taking               into account any reductions that apply under rule 16.4.2(b).

 

accumulated transfer means:
amount

 

accumulated unfunded  in relation to a member or a preserved benefit member,

productivity contributions means the sum of:

 

additional accumulation (see Rule 16.1.2)
amount

 

additional accumulation (see Rule 16.1.2)
component

 

amount includes a nil amount.

 

approved authority has the same meaning as in the Superannuation Act 1990.

 

approved deposit fund has the same meaning as in the SIS Act.

 

approved medical means a medical practitioner approved by CSC for the

practitioner purposes of the Deed and the Rules.

 

approved superannuation means:

scheme

 

APS Agency means an Agency within the meaning of the Public Service Act  1999.

 

APS employee has the same meaning as in the Public Service Act 1999.

 

assessment has the same meaning as in the Superannuation Contributions Tax               (Assessment and Collection) Act 1997.

 

associate a person who has an entitlement to an associate benefit.

 

associate benefit (see Rule 16.1.2)

 

associate preserved (see Rule 16.1.2)
benefit

 

associate preserved (see Rule 16.1.2)
pension

 

associate standard (see Rule 16.1.2)
pension

 

authorised superannuation means a superannuation scheme, declared by the Minister under

scheme Section 33G of the Superannuation Act 1990 to be an authorised  superannuation scheme, providing benefits for persons
 who are employed by, or are members of the staff of, an authority  or body.

 

available early release  in relation to a member at a particular time, means the difference
amount between the member’s early release amount at that time and the  member’s early release deduction amount at that time.

 

average salary is that applicable under Division 5 of Part 3 to a regular member               and under Division 6 of Part 3 to a casual member.

 

base amount (see Rule 16.1.2)

 

basic salary of a member means:

(a) the amount, or the element or elements of remuneration, ascertained under the determination of basic salary made by CSC under the Rules applicable at 30 June 1995 (unless any one of paragraphs (b) to (d) applies in relation to the member); and

(b) if Rule 1.2.3 applies in relation to the member—the amount, or the element or elements of remuneration, ascertained under the determination mentioned in that Rule (unless paragraph (c) or (d) applies in relation to the member); and

(c) if Rule 1.2.4 applies in relation to the member—the amount ascertained under the determination mentioned in that Rule (unless paragraph (d) applies in relation to the member); and

(d) if the member and his/her designated employer have agreed on an amount to be his/her basic salarythat amount.

 

Board means the board established under section 20 of the Superannuation Act 1990 as in force before its repeal by the Superannuation Legislation (Consequential Amendments and Transitional Provisions) Act 2011.

 

casual member means a PSS member who is:

 

Comcare means the Commission for the Safety, Rehabilitation and  Compensation of Commonwealth Employees.

 

compassionate ground has the same meaning as in regulation 6.01 of the Superannuation               Industry (Supervision) Regulations 1994.

 

compensation leave means any period during which a person is absent full-time from his/her employment due to an incapacity for work resulting from:

 

contribution day means:

 

contribution due day means:

 

CSC (short for Commonwealth Superannuation Corporation) has the same meaning as in the Governance of Australian Government Superannuation Schemes Act 2011.

CSS scheme means the superannuation scheme established by the  Superannuation Act 1976, commonly referred to as the               Commonwealth Superannuation Scheme.

 

cumulative has a meaning affected by Rule 1.2.5.

 

death benefit accrual in relation to a deceased member, means the benefit applicable under Rule 5.1.5.

 

deceased limited benefits means a limited benefits member who died before ceasing

member to be a limited benefits member.

 

deceased member means a member who died before ceasing to be a member but  does not include a deceased limited benefits member.

 

deceased pensioner means a former member who, immediately before his/her death, was in receipt of a PSS pension or would have been except for its suspension under the invalidity provisions in Division 11 of Part 10 of these Rules.

 

deceased preserved means a former preserved benefit member who died before

benefit member his/her preserved benefit became payable.

 

decision for the purposes of reconsidering decisions of CSC under  Part 13 of  these Rules, includes:

 under the Rules.

 

Department means:

 

deferred annuity means an annuity of the type referred to by this name in the SIS  Act.

 

designated employer has the same meaning as in the Superannuation Act 1990.

 

director has the same meaning as in the Governance of Australian Government Superannuation Schemes Act 2011.

 

Early  release amount in relation to a member at a particular time, means the sum               of the following amounts:

(a) the member’s accumulated member contributions at that time;

(b) the member’s accumulated funded productivity contributions at that time;

(c) the accumulated transfer amount, or if there are 2 or more such amounts, the sum of those amounts, in respect of the person at that time;

(d) the member’s Accumulated Additional Contributions, as defined in Rule 11.4.8.

 

early release deduction  in relation to a member at a particular time, means the total of amount              the following:

(a) the amount of each early release lump sum previously paid to or for the benefit of the member;

(b) interest (if any) on the amount of each such early release lump sum for the period beginning at the time the early release lump sum is paid and ending at the particular time, in accordance with a determination or determinations by CSC as to rates of interest and method of allocation.

 

early release lump sum has the meaning given by Rule 12.4.1.

 

eligible child in relation to a deceased member, a deceased pensioner, a  deceased preserved benefit member or a deceased limited               benefits member, is a child of the former member (including an               adopted child, an ex-nuptial child, a step-child, a child of the former               member within the meaning of the Family Law Act 1975 or any               other person whom CSC determines is to be treated as a child               of the former member) who:

        is receiving full-time education at a school, college or university; and

        is not ordinarily employed or self-employed;

 and

        ordinarily lived with the former member; or

        was, in the opinion of CSC, wholly or substantially dependent upon the former member; or

        is born after the death of the former member, and would have, in the opinion of CSC, ordinarily lived with, or been wholly or substantially dependent on, the former member if the child had been born before the death of the former member.

 Note   Rule 1.2.6 is relevant for determining if a child is a step-child.

 

eligible superannuation  means a superannuation scheme that has been agreed by the

scheme Minister and CSC to be an eligible superannuation scheme  under Division 8 of Part 6.

 

excluded period of leave means a period of leave of absence specified in Rule 4.2.1.

of absence

 

family law commencement means 18 May 2004.
day

 Note   Schedule 1 to the Superannuation Legislation Amendment (Family Law and Other Matters) Act 2004 commenced on 18 May 2004. The amendments made by the Twenty-second Amendment of this Deed, which related to family law matters, also came into effect on that day.

 

family law value (see Rule 16.1.2)

 

final average salary means the average salary applicable to a member on his/her last  day of membership.

 

final benefit accrual in relation to a former member means the benefit applicable under               Rule 5.1.3.

 

first day of membership means:

 

fixed-term employee means:

        during the transitional period (within the meaning of Part 3 of the Public Employment (Consequential and Transitional) Amendment Act 1999) continues in eligible public employment (within the meaning of Part IV of the Public Service Act 1922, as in force immediately before the repeal time); or

        after the end of that transitional period, continues in the same eligible public employment (within the meaning of Part IV of the Public Service Act 1922, as in force immediately before the repeal time) in which the person was engaged immediately before the end of that transitional period; or

 

fortnightly contribution means the fortnightly salary calculated under Rule 3.1.1 in

salary respect of a regular member or Rule 3.2.1 in respect of a casual  member.

 

funded component (see Rule 16.1.2)

 

funded productivity in relation to a member or a preserved benefit member,

contributions  means:

 

interest includes negative or zero interest, and the following words, when used in relation to interest, have a corresponding meaning – accrue, accrued, accruing, accumulate, accumulated, accumulates.

 

invalidity benefit accrual in relation to a former member means the benefit applicable under Rule 5.1.4.

 

invalidity pensioner means a former member who ceased membership on invalidity retirement who chose, and is entitled to, a pension under Division 5 of Part 6 of the Rules.

 

invalidity retirement  means:

 

involuntary retirement means cessation of membership of the PSS scheme in one of the  following circumstances:


but does not include cessation of a members membership:

     dismissal; or

     forfeiture of office.

 

last birthday in relation to a member means the later of:

 

last day of membership in relation to a member or former member means:

 

legal personal  has the same meaning as in the SIS Act.

representative

 

life assurance company  has the same meaning as in the Income Tax Assessment Act 1936  or the Income Tax Assessment Act 1997.

 

limited benefits member is a member who:

 has not ceased to be such a member.

 

marital or couple  means a relationship at a particular time between a member, a relationship              preserved benefit member or a pensioner and another person,               whether or not they were legally married to each other at the               time of the relationship, under which they had been living with               each other:

        that the other person was wholly or substantially dependent on the member, preserved benefit member or pensioner;

        that they were legally married to each other;

        that the relationship was registered under a law of a State or Territory prescribed for the purposes of section 22B of the Acts Interpretation Act 1901, as a kind of relationship prescribed for the purposes of that section;

        that a child was born of the relationship or was adopted during the period of the relationship;

        that there is a child of both of the persons within the meaning of the Family Law Act 1975;

        that they jointly owned a home which was their usual residence;

        any other matters that CSC considers relevant.

 

maximum benefit means a benefit calculated under Divisions 6 or 7 of Part 5,  Division 3 of Part 11 or Division 3 of Part 14.

 

maximum benefits  means a member to whom Rule 5.6.1, 5.7.1 or 11.3.10

member applies.

 

maximum retiring age in relation to a member means:

     is employed or holds office; or

        was employed or held office on his/her last day of membership.

 

member  means a regular member or a casual member.

 

member contributions means:

 

member contributions (see Rule 16.1.2)
amount

 

member contributions (see Rule 16.1.2)
component

 

member spouse (see Part VIIIB of the Family Law Act 1975 and Rule 16.1.1)

 

Military Rehabilitation means the Commission established under the Military

and Compensation  Rehabilitation and Compensation Act 2004.

Commission

 

minimum retiring age in relation to a member means:

     is employed or holds office; or

        was employed or held office on his/her last day of membership; or

 

non-member spouse (see Part VIIIB of the Family Law Act 1975 and Rule 16.1.1)

 

non-standard pension (see Rule 16.1.2)

 

no-TFN member means a member for which the PSS Fund cannot accept certain contributions because CSC does not hold the members tax file number, in accordance with subregulation 7.04(2) of the Superannuation Industry (Supervision) Regulations 1994.

 

notional interest includes negative or zero notional interest.

 

operative time (see Rule 16.1.2)

 

original interest (see Rule 16.1.2)

 

partial invalidity pension means a pension which:

        where he/she was an invalidity pensioner immediately before last becoming a member, or would have been if his/her invalidity pension was not suspended; or

        whose salary is decreased for health reasons; and

 

partial invalidity  means a person to whom a partial invalidity pension is payable

pensioner  under Division 5 of Part 10 of these Rules.

 

partially dependent child in relation to a deceased member, a deceased pensioner, a  deceased preserved benefit member or a deceased limited               benefits member, is a child of the former member (including an               adopted child, an ex-nuptial child, a step-child, a child of the former               member within the meaning of the Family Law Act 1975 or any               other person whom CSC determines is to be treated as a child               of the former member) who:

        is receiving a full-time education at a school, college or university; and

        is not ordinarily employed or self-employed;

 and

        the former member was voluntarily making, or required by a Court to make, regular maintenance payments; or

        in the opinion of CSC, the former member would have been voluntarily making, or required by a Court to make, such payments if the child had been born before the death of the former member.

 Note   Rule 1.2.6 is relevant for determining if a child is a step-child.

 

partner a person is the partner of another person if the two persons have a relationship as a couple (whether the persons are the same sex or different sexes).

 

payment split (see Rule 16.1.2)

 

pension means a pension payable under the Rules.

 

pensioner means a former member to whom a pension is payable under the Rules, but does not include the recipient of a pension paid as a death benefit.

 

pension payday means the Thursday that falls on 12 July 1990 and each succeeding                alternate Thursday.

 

period of membership means the period commencing on the first day of membership and               ending on the last day of membership of the PSS scheme.

 

permanent employee has the same meaning as in the Superannuation Act 1990.

 

permanent employer means, in relation to a member who is on a period of leave of  absence without pay, the employer by whom the member would               normally be employed if not for the period of leave of absence               without pay.

 

permanent full-time means:

employee

        during the transitional period (within the meaning of Part 3 of the Public Employment (Consequential and Transitional) Amendment Act 1999) continues in eligible public employment (within the meaning of Part IV of the Public Service Act 1922, as in force immediately before the repeal time); or

        after the end of that transitional period, continues in the same eligible public employment (within the meaning of Part IV of the Public Service Act 1922, as in force immediately before the repeal time) in which the person was engaged immediately before the end of that transitional period;

 

permanent part-time  means:

employee

        during the transitional period (within the meaning of Part 3 of the Public Employment (Consequential and Transitional) Amendment Act 1999) continues in eligible public employment (within the meaning of Part IV of the Public Service Act 1922, as in force immediately before the repeal time); or

        after the end of that transitional period, continues in the same eligible public employment (within the meaning of Part IV of the Public Service Act 1922, as in force immediately before the repeal time) in which the person was engaged immediately before the end of that transitional period;

 

personal earnings in relation to a person who is an invalidity pensioner means salary,               wages, fees or other amounts received by the person for services               rendered, or work performed, by the person and includes:

 

plus has a meaning affected by Rule 1.2.5.

 

pre-assessment payment means a payment made under Division 10 of Part 10 of these  Rules.

 

preserved benefit means a benefit that, on a member ceasing membership, is either compulsorily or voluntarily retained in the PSS scheme for payment under Part 8 of these Rules, together with any increases under Division 6 of that Part, to, or in respect of, the former member or his/her beneficiaries.

 

preserved benefit means a former member to or in respect of whom a preserved

member benefit has not yet been paid.

 

productivity contributions (see Rule 16.1.2)
amount

 

productivity contributions (see Rule 16.1.2)
component

 

PSS Fund means the Fund established by Deed, as amended from time to  time, under the Superannuation Act 1990.

 

PSS member means a person who is a member of the PSS scheme by force of Part 3 of the Superannuation Act 1990.

 

PSS scheme means the superannuation scheme established by the Deed, as amended from time to time, referred to in Section 4 of the Superannuation Act 1990.

 

recognised allowances of a member means:

(a) the amount, or the element or elements of remuneration, ascertained under the determination of recognised allowances made by CSC under the Rules applicable at 30 June 1995 (unless any one of paragraphs (b) to (d) applies in relation to the member); and

(b) if Rule 1.2.3 applies in relation to the member—the amount, or the element or elements of remuneration, ascertained under the determination mentioned in that Rule (unless paragraph (c) or (d) applies in relation to the member); and

(c) if Rule 1.2.4 applies in relation to the member—the amount ascertained under the determination mentioned in that Rule (unless paragraph (d) applies in relation to the member); and

(d) if the member and his/her designated employer have agreed on an amount to be his/her recognised allowancesthat amount.

 

regular member means a PSS member who is:

 but does not include a PSS member who is paid fees on a daily basis in respect of an office or position.

 

release authority  means:

for the purposes of Part 17:

for the purposes of these Rules, except for Part 17:

 

RSA has the same meaning as in the Retirement Savings Accounts Act  1997.

 

roll-over means payment by CSC as a roll-over superannuation benefit (as defined in the Income Tax Assessment Act 1997) within the superannuation system (as defined in the SIS Act).

 

Note:

 

The term roll-over superannuation benefit is defined in Division 306 of the Income Tax Assessment Act 1997 and includes a superannuation benefit paid from one superannuation plan to another. The term superannuation system is defined in regulations made under the SIS Act and includes regulated superannuation funds, approved deposit funds, annuities, deferred annuities and Retirement Savings Accounts.

 

 

scheme value (see Rule 16.1.2)

 

Secretary has the same meaning as under the Public Service Act 1999.

 

separation amount (see Rule 16.1.2)

 

separation factor (see Rule 16.1.2)

 

severe financial hardship has the same meaning as in regulation 6.01 of the Superannuation               Industry (Supervision) Regulations 1994.

 

SIS Act means the Superannuation Industry (Supervision) Act 1993 and the               regulations in force under that Act.

 

splitting agreement (see Rule 16.1.2)

 

splitting order (see Rule 16.1.2)

 

splitting percentage (see Rule 16.1.2)

 

spouse in relation to a deceased member, a deceased limited benefits member, a deceased preserved benefit member or a deceased pensioner, means:

        at the time of the deceased person’s death, that other person was legally married to the deceased person; and

        in the opinion of CSC, that other person was wholly or substantially dependent upon the deceased person at the time of the deceased person’s death.

 

standard pension (see Rule 16.1.2)

 

standard risk in relation to a member being assessed by a life office for the  provision of additional death and invalidity cover under Division 3               of Part 10 of these Rules, means a member who does not:

 

statutory office has the same meaning as in the Superannuation Act 1990.

 

sum has a meaning affected by Rule 1.2.5

 

superannuation guarantee means an amount for the purposes of ensuring that an employer of

additional amount  a person would not have an individual superannuation guarantee shortfall within the meaning of the Superannuation Guarantee (Administration) Act 1992 in respect of the person for any period in which the person was a member.  Such an amount will be determined by CSC having regard to:

(a) the charge percentage specified in subsection 19(2) of the Superannuation Guarantee (Administration) Act 1992 as it applied during the period in which the person was a member; and

(b) the advice of an actuary in relation to the calculation of the amount.

 

superannuation interest (see Rule 16.1.2)

 

surcharge has the same meaning as in the Superannuation Contributions Tax               (Assessment and Collection) Act 1997.

 

surchargeable means surchargeable contributions (within the meaning of the

contributions Superannuation Contributions Tax (Assessment and Collection) Act 1997) that are attributable to the operation of the Rules.

 

temporary employee has the same meaning as in the Superannuation Act 1990.

 

temporary full-time  means a temporary employee employed to work on a

employee full-time basis for a period of at least three months or such other  period as CSC decides.

 

temporary part-time means a temporary employee who is employed to work on a

employee part-time basis for a period of at least three months or such other  period as CSC decides

 

terminal medical means a condition(s) suffered by an affected person that has condition              been certified by two or more medical practitioners, at least one of               whom is not treating the affected person, who have experience in               the condition(s), as being of either a terminal nature or of such               severity that within two years of the date of their certificate the               affected person would need assistance with personal or nursing care               on a daily basis.

 

total has a meaning affected by Rule 1.2.5.

 

totally and permanently  means that, because of a physical or mental condition, the

incapacitated person is unlikely ever to work again in a job for which he/she:

 

transfer amount  means an amount transferred by:

(a) a member into the PSS scheme under Rule 11.1.1 or 11.1.2; or

(b) a preserved benefit member into the PSS scheme under Rule 11.1.1A;

 less income tax payable by the PSS Fund in relation to that amount.

 

unfunded benefit accrual in relation to a member on a particular day means the amount of  the benefit accrual under Division 1 of Part 5 of the member on               that day less the sum of his/her accumulated member               contributions and accumulated productivity contributions on               that day

 

unfunded component (see Rule 16.1.2).

 

unfunded preserved in relation to a preserved benefit for a preserved benefit member
benefit on a particular day, means the amount of the preserved benefit  on that day that is attributable to the amount (if any) of the               members final unfunded benefit accrual included in the               preserved benefit, taking into account any reductions that apply               under Rule 16.4.5.

 

zero contributions member means a member for which the PSS Fund is unable to accept Part 4 contributions under the SIS Act because the member:

 

1.2.2 If a word or phrase defined in a Part or a Division of these Rules is used elsewhere in these Rules, it has the same meaning unless excluded by the context.  For convenience, these words and phrases are listed as signpost definitions in Rule 1.2.1 above.

Minister may make determinations of basic salary and recognised allowances

1.2.3 This rule applies in relation to a member if the Minister makes a determination of an amount, or an element or elements of remuneration, as basic salary or recognised allowances, that applies in relation to the member.

Members to whom a determination applies

1.2.4 This rule applies in relation to a member if:

(a) the member is appointed under an Act and a Minister makes a determination under               that Act in respect of the remuneration of the member; or

(b) the member is appointed under the Parliamentary Service Act 1999 and the  Presiding Officers (within the meaning of that Act) make a determination under that               Act in respect of the remuneration of the member; or

(c) a determination is made under the Remuneration Tribunal Act 1973 in respect of  the remuneration of the member;

and:

(d) an amount of basic salary of the member can be ascertained under the  determination; or

(e) an amount of recognised allowances of the member can be ascertained under the               determination and the determination expressly mentions recognised allowances.

1.2.4A For the purposes of Rule 1.2.4(c), an assignment under subsection 14(3) of the Remuneration Tribunal Act 1973 of a Secretary to an amount of remuneration is taken to be a determination made under the Remuneration Tribunal Act 1973 in respect of the remuneration of the Secretary.

1.2.5 If:

(a) a provision of these Rules involves the calculation of a sum (whether the expression “cumulative”, “sum”, “total”, “plus” or any other expression is used); and

(b) the calculation involves negative interest or negative notional interest; and

(c) apart from this Rule, the sum would be less than zero;

the sum is taken to be zero.

1.2.6 Without limiting who is a step-child for the purposes of the Rules, someone who is a child of a partner of the person is the step-child of the person, if he or she would be the person’s step-child except that the person is not legally married to the partner.

Part 2 MEMBERSHIp

Division 1

Becoming a member

2.1.1 A person becomes a PSS member under Part 3 of the Superannuation Act 1990. That Part of the Superannuation Act 1990 also provides when a person becomes a member of the PSS scheme and provides authority for the Minister to declare that a particular person is a PSS member or is not a PSS member.

 

Note: Amendments to the Superannuation Act 1990 that commenced on 1 July 2005 effectively closed the PSS scheme to new entrants from that date. Nevertheless, certain people can join or are required to rejoin the PSS scheme on or after 1 July 2005, in particular:

        already a member of the PSS scheme eg due to another concurrent
          instance of employment;

        a person who has a preserved benefit in the PSS scheme that has not
         been paid;

        a person who is an invalidity pensioner;

Types of members

2.1.2 Members are classified according to the nature of their employment in a Department or Commonwealth authority or body as set out in the following Table:

 

Table ­ Membership

Category

Employment

 Does NOT include

regular member

permanent full-time

permanent part-time

temporary full-time

temporary part-time with entitlement to holiday leave and sick leave

A person paid fees on a daily basis

casual member

temporary part-time with  no entitlement to holiday leave and sick leave

Paid fees on a daily basis

A person who is a regular member

Note: Before becoming a member while employed in a temporary full-time or temporary part-time capacity, a person must meet the requirements of section 8 of the Superannuation Act 1990 in relation to length of employment.

2.1.3 A regular member or a casual member can be further classified for particular purposes as a limited benefits member (see Division 2 of Part 10), a maximum benefits member (see Rule 5.6.1), no-TFN member (see Rule 1.2.1) or a zero contributions member (see Rule 1.2.1).

Concurrent memberships

2.1.4 A person may be a member in respect of two or more concurrent employments.

2.1.5 A person who:

(a) is an eligible employee for the purposes of the CSS scheme; or

(b) has one or more preserved benefits;

may also concurrently be a member in respect of one or more employments.

Preserved benefit members

2.1.6 A former member who has a preserved benefit compulsorily or voluntarily retained in the PSS scheme, but not yet paid, is classified as a preserved benefit member.

2.1.7 A former member may have two or more preserved benefits.  Such preserved benefits may be combined (see Rules 8.5.4, 8.5.5 and 8.5.6).

Note: Separate benefits may be payable in respect of periods of concurrent membership and in respect of membership and concurrent preserved benefit membership.

Choosing to cease PSS membership

2.1.8 For the purposes of subsection 6B(1) of the Superannuation Act 1990, the phrase a member who is making member contributions includes, but is not limited to:

(a) a member who is making member contributions to the PSS Fund at a rate of between 2% and 10% (inclusive);

(b) a member who is not contributing to the PSS Fund because they are permitted to contribute at a rate of 0% in accordance with the Rules; and

(c) a maximum benefits member,

but does not include a preserved benefit member.

 

Note:  Section 6B of the Superannuation Act 1990 generally allows a “contributory” member (but also includes a maximum benefits member) of the PSS to make an election to cease to be a member of the scheme.  A member who is on a period of leave without pay who cannot pay contributions under the Rules may be able to make such an election when the relevant period of leave has ended.  A preserved benefit member may also be able to make such an election if they return to contributory membership in the future.

Where a member or a maximum benefits member makes such an election, they will not be able to return to membership of the PSS in respect of any current membership, or any former membership where they have a preserved benefit in the scheme.

 

 

 

 

Division 2

Unsuccessful candidates at Parliamentary elections

2.2.1 A person who ceases membership on the voluntary termination of his/her appointment or employment to become a candidate at a Parliamentary election is deemed not to have ceased to be a member, provided he/she:

(a) ceased membership within 6 months before nominations for the election closed; and

(b) was a candidate at the election and failed to be elected; and

(c) again becomes a member as a result of a job application made within 2 months of the election result being declared.

2.2.2 A person who dies or becomes physically or mentally incapacitated after ceasing membership to contest a Parliamentary election may, where considered appropriate by CSC, in agreement with the Minister, be deemed to have continued to be a member to a particular date and to have died or retired on invalidity grounds while a member.

2.2.3 A person who is deemed under this Division not to have ceased to be a member:

(a) is not entitled to any benefits that were payable when he/she ceased membership to contest the election; and

(b) must repay within a reasonable period the amount of any benefit paid; and

(c) is deemed to have been in receipt of the annual salary that would have been his/her annual salary had he/she not ceased membership.

Member re-instated

2.2.4 A person who again becomes a member because of having been, or having been deemed to be, re-appointed or re-employed in circumstances similar to:

(a) the circumstances in which a person could have been re-appointed to the Australian Public Service under section 63F, 63G or 66B of the Public Service Act 1922, as in force immediately before its repeal; or

(b) the circumstances in which a person could have been deemed to have been reappointed to the Australian Public Service in accordance with section 87K, 87M, 87P or 87Q of the Public Service Act 1922, as in force immediately before its repeal;

and he/she would have continued to be a member if his/her appointment or employment had not been terminated, is deemed not to have ceased to be a member and must repay any benefit paid to him/her as a result of that termination.

Part 3 salary for superannuation
purposes

Division 1

Fortnightly contribution salary

3.1.1 The fortnightly contribution salary on a contribution due day of a regular member is calculated by the following formula:

ACS × Factor

26

where ACS is annual contribution salary and ACS and Factor are defined:

(a) in rule 3.1.2 if the regular member, on his/her last birthday, was:

(i) a regular member; and

(ii) not in receipt of partial invalidity pension; or

(b) in rule 3.1.3 if the regular member, on his/her last birthday, was:

(i) a regular member; and

(ii) in receipt of  partial invalidity pension; or

(c) in rule 3.1.4 if the regular member, on his/her last birthday, was:

(i) a casual member; and

(ii) not in receipt of partial invalidity pension; or

(d) in rule 3.1.5 if the regular member, on his/her last birthday, was;

(i) a casual member; and

(ii) in receipt of partial invalidity pension.

Definitions of ACS and Factor

3.1.2 If the regular member, on his/her last birthday, was a regular member and was not in receipt of partial invalidity pension:

(a) ACS is the greatest of:

(i) the sum of his/her annual basic salary and recognised allowances, if any, payable as for full time work on his/her last birthday; and

(ii) the sum of the annual maintained basic salary and maintained recognised allowances, if any, applicable to him/her on his/her last birthday (see Division 3 of this Part); and

(iii) his/her annual CSS salary, if any, on his/her last birthday (see Division 4 of this Part); and

(b) Factor is, if, on his/her last birthday, the regular member was:

(i) a permanent full-time employee or a temporary full-time employee 1; or

(ii) a permanent part-time employee or a temporary part-time employee the ratio

PTH

FTH

where:

PTH is the number of hours being worked part-time (including any hours not being work that attracted compensation payments) on that last birthday; and

FTH is the number of hours that would have been worked on that last birthday if he/she had been working full time.

3.1.3 If the regular member, on his/her last birthday, was a regular member and was in receipt of partial invalidity pension:

(a) ACS is:

(i) if the partial invalidity pension became applicable when maintained basic salary and maintained recognised allowances (see Division 3 of this Part) or CSS salary (see Division 4 of this Part) were not applicable, the sum of his/her annual basic salary and recognised allowances, if any, payable as for full time work on his/her last birthday; or

(ii) if:

(A) maintained basic salary and/or maintained recognised allowances (see Division 3 of this Part) or CSS salary (see Division 4 of this Part) were applicable on that last birthday; and

(B) at the last birthday before the partial invalidity pension became applicable, maintained basic salary and/or maintained recognised allowances (see Division 3 of this Part) or CSS salary (see Division 4 of this Part) were applicable;

an amount determined by CSC having regard to the principles in this Division underlying the calculation of fortnightly contribution salary and the need for equity between members; and

(b) Factor is, if, on his/her last birthday, the regular member was:

(i) a permanent full-time employee or a temporary full-time employee 1; or

(ii) a permanent part-time employee or a temporary part-time employee the ratio

PTH

FTH

where:

PTH is the number of hours being worked part-time (including any hours not being worked that attracted compensation payments) on that last birthday; and

FTH is the number of hours that would have been worked on that last birthday if he/she had been working full-time.

3.1.4 If the regular member, on his/her last birthday, was a casual member and was not in receipt of  partial invalidity pension:

(a) ACS is the greater of:

(i) the sum of his/her annual basic salary and recognised allowances, if any, payable as for full time work on the day he/she last commenced as a regular member; or

(ii) his/her annual CSS salary, if any, on the day he/she last commenced as a regular member (see Division 4 of this Part); or

(iii) his/her salary for average salary purposes under paragraph 3.5.2(d) or (e), as the case may be, on the day he/she last commenced as a regular member (see Division 5 of this Part);

and

(b) Factor is, if, on the day he/she last commenced as a regular member, the regular member was:

(i) a permanent full-time employee or a temporary full-time employee 1; or

(ii) a permanent part-time employee or a temporary part-time employee the ratio

PTH

FTH

where:

PTH is the number of hours being worked part-time (including any hours not being worked that attracted compensation payments) when he/she last commenced as a regular member; and

FTH is the number of hours that would have been worked when he/she last commenced as a regular member if he/she had been working full-time.

3.1.5 If the regular member, on his/her last birthday, was a casual member and was in receipt of partial invalidity pension:

(a) ACS is the sum of his/her annual basic salary and recognised allowances, if any, payable as for full time work on the day he/she last commenced as a regular member;

(b) Factor is, if, on the day he/she last commenced as a regular member, the regular member was:

(i) a permanent full-time employee or a temporary full-time employee 1; or

(ii) a permanent part-time employee or a temporary part-time employee the ratio

PTH

FTH

where:

PTH is the number of hours being worked part-time (including any hours not being worked that attracted compensation payments) when he/she last commenced as a regular member; and

FTH is the number of hours that would have been worked when he/she last commenced as a regular member if he/she had been working full-time.

 

Division 2

Fortnightly contribution salary

3.2.1 The fortnightly contribution salary on a contribution due day of a casual member who is not paid fees on a per diem basis is:

(a) the amount of basic salary and recognised allowances, if any, received by him/her in respect of the fortnight to which that contribution due day relates; or

(b) if he/she is on compensation leave on the contribution due day, the amount of basic salary and recognised allowances, if any, that would have been received if he/she was working (and not receiving compensation payments in respect of hours not worked) the hours applicable in the last complete fortnight worked before going on compensation leave.

3.2.2 The fortnightly contribution salary on a contribution due day of a casual member  who is paid fees on a per diem basis in respect of an office or position is:

(a) the amount of the fees, if any, received by him/her in respect of the fortnight to which that contribution due day relates; or

(b) if he/she is on compensation leave on the contribution due day, the amount of the fees that would have been received if he/she was working (and not receiving compensation payments in respect of days not worked) the days applicable in the last complete fortnight worked before going on compensation leave.

3.2.3 CSC will determine the fortnightly contribution salary of a person who becomes a casual member when he/she is in receipt of a partial invalidity pension.

 

Division 3

When applicable

3.3.1 If a regular member suffers a reduction in the sum of his/her hourly rate of basic salary and/or recognised allowances a maintained basic salary and, if any, maintained recognised allowances apply for the purposes of these Rules until such time as the sum of the annual rate of the regular members basic salary and, if any, recognised allowances on the basis of full-time work, equals or exceeds the sum of the regular members maintained basic salary and maintained recognised allowances.

Maintained salary reduction occurred before 1 July 2003

3.3.2 Where the reduction in the hourly rate occurred before 1 July 2003:

(a) the amount of maintained basic salary on any day before 1 July 2003 is the annual rate, on the basis of full-time work, at which the basic salary applicable to the regular member in the position held immediately prior to the reduction in the hourly rate is payable on that day; and

(b) the amount of maintained basic salary on any day after 30 June 2003 is the amount of maintained basic salary on 30 June 2003 increased by multiplying that amount by the factor calculated by the formula below; and

(c) the amount of maintained recognised allowances, if any, on any day before 1 July 2003 is:

(i) if a partial invalidity pension is not payable as a consequence of the reduction in the hourly rate the annual amount, on the basis of full-time work, of the recognised allowances, if any, applicable to the regular member in the position held immediately prior to the reduction in the hourly rate; or

(ii) if a partial invalidity pension is payable as a consequence of the whole or part of the reduction in the hourly rate the annual rate, on the basis of full-time work, at which the recognised allowances, if any, applicable to the regular member in the position held immediately prior to the reduction in the hourly rate are payable on that day; and

(d) the amount of maintained recognised allowances, if any, on any day after 30 June 2003 is:

(i) if a partial invalidity pension is not payable as a consequence of the reduction in the hourly rate the annual amount, on the basis of full-time work, of the recognised allowances, if any, applicable to the regular member in the position held immediately prior to the reduction in the hourly rate; or

(ii) if a partial invalidity pension is payable as a consequence of the whole or part of the reduction in the hourly rate the amount of maintained recognised allowances on 30 June 2003 increased by multiplying that amount by the factor calculated by the formula below:


where:

New AWOTE is the index number of the full-time adult average weekly ordinary time earnings last published by the Australian Statistician before the day, in respect of a period ending after the reduction in the members hourly rate of basic salary and/or recognised allowances occurred but before the day;

Old AWOTE is the index number of the full-time adult average weekly ordinary time earnings last published by the Australian Statistician on or before 1 July 2003;

provided:

(A) the New AWOTE index number exceeds the Old AWOTE index number; and

(B) the factor is to be rounded up or down to the nearest one thousandth; and

(C) any index number that is published by the Australian Statistician in substitution for an earlier published Old AWOTE or New AWOTE index number is to be disregarded for the purposes of this Rule; and

if the Australian Statistician changes the reference base for the index of full-time adult average weekly ordinary time earnings, regard shall only be had to index numbers published in terms of the new reference base.

Maintained salary reduction occurred after 30 June 2003

3.3.3 Where the reduction in the hourly rate occurred after 30 June 2003:

(a) the amount of maintained basic salary on any day is the annual amount, on the basis of full-time work, of the basic salary applicable to the regular member in the position held immediately prior to the reduction in the hourly rate increased by multiplying that amount by the factor calculated by the formula below; and

(b) the amount of maintained recognised allowances, if any, on any day is:

(i) if a partial invalidity pension is not payable as a consequence of the reduction in the hourly rate the annual amount, on the basis of full-time work, of the recognised allowances, if any, applicable to the regular member in the position held immediately prior to the reduction in the hourly rate; or

(ii) if a partial invalidity pension is payable as a consequence of the whole or part of the reduction in the hourly rate the annual amount, on the basis of full-time work, of the recognised allowances, if any, applicable to the regular member in the position held immediately prior to the reduction in the hourly rate increased by multiplying that amount by the factor calculated by the formula below:


where:

New AWOTE is the index number of the full-time adult average weekly ordinary time earnings last published by the Australian Statistician before the day, in respect of a period ending after the reduction in the members hourly rate of basic salary and/or recognised allowances occurred but before the day;

Old AWOTE is the index number of the full-time adult average weekly ordinary time earnings last published by the Australian Statistician before, or at the same time as, the reduction in the members hourly rate of basic salary and/or recognised allowances occurred;

provided:

(A) the New AWOTE index number exceeds the Old AWOTE index number; and

(B) the factor is to be rounded up or down to the nearest one thousandth; and

(C) any index number that is published by the Australian Statistician in substitution for an earlier published Old AWOTE or New AWOTE index number is to be disregarded for the purposes of this Rule; and

if the Australian Statistician changes the reference base for the index of full-time adult average weekly ordinary time earnings, regard shall only be had to index numbers published in terms of the new reference base.

 

 

Division 4

When applicable

3.4.1 Where a regular member elected to cease to be an eligible employee under:

(a) section 244 of the Superannuation Act 1976; or

(b) paragraph 4(1)(zo) of the Superannuation (CSS) Eligible Employees Regulations or subregulation 4A(1) of the Superannuation (CSS) Continuing Contributions for Benefits Regulations;

a CSS salary applies if, on the anniversary of his/her birth on or after that election:

(i) if he/she was not in receipt of partial invalidity pension under that Act, his/her annual rate of salary under that Act, or the salary that would have applied but for the election, was greater than the sum of his/her basic salary and recognised allowances, if any; or

(ii) if he/she was in receipt of partial invalidity pension under that Act at the time of making the election, or would have been in receipt of such partial invalidity pension under that Act but for the election, his/her annual rate of salary under that Act, calculated as though the anniversary of birth was the date of the election, was greater than the sum of his/her basic salary and recognised allowances, if any.

3.4.2 A CSS salary applies until such time as either:

(a) the sum of the members basic salary and recognised allowances, if any, on the basis of full-time work; or

(b) the sum of the maintained basic salary and maintained recognised allowances, if any, applicable to the member;

equals or exceeds the CSS salary.

Rate of CSS Salary

3.4.3 On a particular day, the amount of a CSS salary is:

(a) if the regular member was not in receipt of partial invalidity pension under the Superannuation Act 1976 at the time of electing to cease to be an eligible employee, the amount of the annual rate of salary for basic contribution purposes that would have applied to the member if he/she had not ceased to be an eligible employee; or

(b) if the regular member was in receipt of partial invalidity pension under the Superannuation Act 1976 at the time of electing to cease to be an eligible employee, or would have been in receipt of partial invalidity pension but for the election, his/her annual rate of salary under that Act.

Division 5

Average Salary


3.5.1 The average salary on any day of a regular member is calculated by the following formula:

 

where the factors are defined in the following Table Average Salary Factors according to the mode of cessation of membership:

 

Average Salary Factors

Cessation otherwise than on involuntary retirement

Cessation on involuntary retirement

NOTE:  The factors defined for the case of not ceasing on involuntary retirement are used to calculate average salary on cessation on involuntary retirement, if the date of cessation is an anniversary of the regular members birth, or is treated as such under Rule 3.5.4.

Three or more anniversaries of birth in period of membership  (see also Rule 3.5.5)

X  is 0.

X is the amount calculated by the following formula:

 

 

where:

D  is 1 plus the number of days between the date of the regular members cessation on involuntary retirement and the date of the anniversary of his/her birth immediately preceding the date of cessation; and

O  is the regular members salary for average salary purposes (see Rule 3.5.2) on the date of his/her cessation on involuntary retirement, and

P  is the regular members salary for average salary purposes (see Rule 3.5.2) on the anniversary of his/her birth immediately preceding the anniversary in 2  below.

Continued ...

Average Salary Factors Continued

Cessation otherwise than on involuntary retirement

Cessation on involuntary retirement

1   is 
the regular members salary for average salary purposes (see Rule 3.5.2) on the anniversary of his/her birth immediately preceding the day at which the calculation is made, or on that day if it is an anniversary of his/her birth.

1   is
the regular members salary for average salary purposes (see Rule 3.5.2) on the anniversary of his/her birth immediately preceding the date of cessation on involuntary retirement.

2  is
the regular members salary for average salary purposes (see Rule 3.5.2) on the anniversary of his/her birth immediately preceding the anniversary in the definition of 1.

3  is
the regular members salary for average salary purposes (see Rule 3.5.2) on the anniversary of his/her birth immediately preceding the anniversary in the definition of 2.

3  is 0.

 

E  is 0.

n  is 3.

Two anniversaries of birth in period of membership (see also Rule 3.5.5)

X  is 0.

X is the amount calculated by the following formula:

 

 

where:

D  is 1 plus the number of days between the date of the regular members cessation on involuntary retirement and the date of the anniversary of his/her birth immediately preceding the date of cessation; and

O  is the regular members salary for average salary purposes (see Rule 3.5.2) on the date of his/her cessation on involuntary retirement, and

P  is the regular members salary for average salary purposes (see Rule 3.5.2) on his/her first day of membership.

1   is
the regular members salary for average salary purposes (see Rule 3.5.2) on the anniversary of his/her birth immediately preceding the day at which the calculation is made, or on that day if it is an anniversary of his/her birth.

1   is
the regular members salary for average salary purposes (see Rule 3.5.2) on the anniversary of his/her birth immediately preceding the date of cessation on involuntary retirement.

2  is
the regular members salary for average salary purposes (see Rule 3.5.2) on the anniversary of his/her birth immediately preceding the anniversary in the definition of 1.

Average Salary Factors Continued

Cessation otherwise than on involuntary retirement

Cessation on involuntary retirement

3   is 0.

E is the regular members  salary for average salary purposes (see Rule 3.5.2) on his/her first day of membership.

E  is 0.

n  is 3.

One anniversary of birth in period of membership (see also Rule 3.5.5)

X  is 0.

X is the amount calculated by the following formula:

 

 

where:

D  is 1 plus the number of days between the date of the regular members cessation on involuntary retirement and the date of the anniversary of his/her birth immediately preceding the date of cessation, and

O  is the regular members salary for average salary purposes (see Rule 3.5.2) on the date of his/her cessation on involuntary retirement, and

P  is the regular members  salary for average salary purposes (see Rule 3.5.2) on his/her first day of membership.

1   is 
the regular members salary for average salary purposes (see Rule 3.5.2) on the anniversary of his/her birth immediately preceding the day at which the calculation is made, or on that day if it is an anniversary of his/her birth.

1   is
the regular members salary for average salary purposes (see Rule 3.5.2) on the anniversary of his/her birth immediately preceding the date of cessation on involuntary retirement.

2  is 0.

3  is 0.

E is the regular members  salary for average salary purposes (see Rule 3.5.2) on his/her first day of membership.

E  is 0.

n  is 2.

Continued ...

Average Salary Factors Continued

Cessation otherwise than on involuntary retirement

Cessation on involuntary retirement

No anniversaries of birth in period of membership (see also Rule 3.5.5)

X  is 0.

X is the amount calculated by the following formula:

 

 

where:

D  is 1 plus the number of days between the date of the regular members cessation on involuntary retirement and the date of his/her first day of membership;  and

O  is the regular members salary for average salary purposes (see Rule 3.5.2) on the date of  his/her cessation  on involuntary retirement; and

P  is the regular members salary for average salary purposes (see Rule 3.5.2) on his/her first day of membership.

1    is 0.

2  is 0.

3  is 0.

E is the regular members  salary for average salary purposes (see Rule 3.5.2) on his/her first day of membership.

E  is 0.

n   is 1.

Salary for average salary purposes

3.5.2 For the purposes of the calculation under Rule 3.5.1, the salary for average salary purposes of a regular member is the greater of:

(a) the sum of his/her annual rate of basic salary and recognised allowances, if any, payable as for full time work; and

(b) the sum of his/her annual maintained basic salary and maintained recognised allowances, if any (see Division 3 of this Part); and

(c) his/her annual CSS salary, if any (see Division 4 of this Part) calculated as though he/she had continued to be an eligible employee under the Superannuation Act 1976 until ceasing to be an eligible employee on the day at which the calculation is made; and

(d) if he/she was a casual member paid fees on a per diem basis in respect of an office or position during his/her period of membership, the highest of the amounts in respect of  any 12 months preceding an anniversary of birth while such a casual member calculated by multiplying the per diem fee applicable to him/her on that anniversary of birth by:

(i) the number of days in that 12 months on which he/she was paid for holding that office or position, including days not worked in the office or position that attracted compensation payments; or

(ii) if the office or position had been held for less than 12 months preceding that anniversary of birth:

(A) the number of days, if any, on which he/she was paid for holding that office or position, including days not worked in the office or position that attracted compensation payments; and

(B) the number of days in the remainder of a 12 month period on which either the per diem fee would have been paid if the pattern of expected fees applied in the remainder of a 12 month period, or that would attract compensation payments in respect of days not worked in the office or position; and

(e) if he/she was a casual member not paid on a per diem basis during his/her period of membership, the highest of the amounts of his/her annual basic salary and recognised allowances, if any, that would have been paid in any preceding year ending immediately before an anniversary of birth on which he/she was a casual member if:

(i) he/she worked full-time for a year ending on that anniversary; and

(ii) he/she received throughout that year the hourly rate of basic salary and recognised allowances, if any, applicable to the duties he/she undertook (including in respect of any hours not being worked, hours that attracted compensation payments):

(A) on the anniversary of birth; or

(B) when next undertaking duties after the anniversary of birth, if he/she had no duties on the anniversary of birth.

CSC may use alternative salary for average salary purposes

3.5.3 CSC may use an alternative average salary in circumstances where it considers that the average salary calculated in Rule 3.5.1 is not in accordance with the spirit of the Rules and would lead to inequitable treatment between members.

When last day of membership counts as a birthday

3.5.4 A regular members last day of membership which occurs immediately before the anniversary of his/her birth is counted as an anniversary of his/her birth.

Birthdays and salary when a member of the CSS scheme

3.5.5 If a regular member was an eligible employee for the purposes of the Superannuation Act 1976 immediately before becoming a member, the anniversaries of birth last occurring before becoming a member, together with the annual rate of salary applicable under section 5 of that Act to the person on those days, or any higher salary in respect of which the person was contributing because of section 47 of that Act, will be taken into account, if  required, to calculate average salary.  The day of becoming an eligible employee counts as an anniversary of birth.

Leap year birthdays

3.5.6 If a regular member was born on 29 February his//her anniversary of birth in any year that is not a leap year is taken to occur on 1 March.

Division 6

Average salary birthdays

3.6.1 The average salary on any day of a casual member is the average of his/her salary for average salary purposes (see Rules 3.6.2 and 3.6.3) payable or applicable on:

(a) if the casual members period of membership encompasses three or more anniversaries of his/her birth, each of the three anniversaries of his/her birth that  precede that particular day, or the anniversary of birth that occurs on that day and the two anniversaries of birth that precede it (see Rules 3.6.5, 3.6.6 and 3.6.7); or

(b) if the casual members period of membership does not encompass three anniversaries of his/her birth, each of the anniversaries of his/her birth (see Rules 3.6.5, 3.6.6 and 3.6.7), if any, in the period of his/her membership and his/her first day of membership (if not an anniversary of his/her birth).

Casual members not paid on per diem basis salary for average salary purposes

3.6.2 On any anniversary of birth referred to in Rule 3.6.1 the salary for average salary purposes of a casual member not paid on a per diem basis is the greater of:

(a) the amount of his/her annual basic salary and recognised allowances, if any, that would have been paid in the year ending immediately before that anniversary of birth on which he/she was a casual member if:

(i) he/she worked full/time for a year ending on that anniversary; and

(ii) he/she received throughout that year the hourly rate of basic salary and recognised allowances, if any, applicable to the duties he/she undertook (including in respect of any hours not being worked, hours that attracted compensation payments):

(A) on the anniversary of birth; or

(B) when next in employment after the anniversary of birth, if he/she had no duties on the anniversary of birth; or

(C) when last in employment, if he/she had no duties on, and did not undertake duties after, the anniversary of birth;

or

(b) the amount of his/her annual basic salary and recognised allowances, if any, that would have been paid in any preceding year ending immediately before an anniversary of birth on which he/she was a casual member if:

(i) he/she worked full/time for a year ending on that anniversary; and

(ii) he/she received throughout that year the hourly rate of basic salary and recognised allowances, if any, applicable to the duties he/she undertook (including in respect of any hours not being worked, hours that attracted compensation payments):

(A) on the anniversary of birth; or

(B) when next in employment after the anniversary of birth, if he/she had no duties on the anniversary of birth;

or

(c) the higher of the salaries for average salary purposes calculated under paragraphs (a) or (b) of Rule 3.6.3 on any previous anniversary of birth on which he/she was a casual member paid on a per diem basis; and

(d) if, during his/her period of membership, he/she has been a regular member on an  anniversary of his/her birth occurring immediately before becoming a casual member, the greater on that anniversary of:

(i) the sum of his/her annual basic salary and recognised allowances, if any, payable as for full time work; and

(ii) the sum of his/her annual maintained basic salary and maintained  recognised allowances, if any (see Division 3 of this Part); and

(iii) his/her annual CSS salary, if any (see Division 4 of this Part).

Casual members paid on a per diem basis salary for average salary purposes

3.6.3 On any anniversary of birth referred to in Rule 3.6.1 the salary for average salary purposes of a casual member who is paid on a per diem basis in respect of an office or position,  is the greater of:

(a) the amount calculated in respect of the 12 months preceding that anniversary of birth during his/her period of membership by multiplying the per diem fee applicable to him/her on that anniversary of birth by:

(i) the number of days in that 12 months on which he/she was paid for holding that office or position, including days not worked in the office or position that attracted compensation payments; or

(ii) if the office or position had been held for less than 12 months preceding that anniversary of birth:

(A) the number of days, if any, on which he/she was paid for holding that office or position, including days not worked in the office or position that attracted compensation payments; and

(B) the number of days in the remainder of a 12 month period on which either the per diem fee would have been paid if the pattern of expected fees applied in the remainder of a 12 month period, or that would attract compensation payments in respect of days not worked in the office or position;

or

(b) the amount calculated in respect of any 12 months ending on any anniversary of birth during his/her period of membership on which he/she was a casual member paid on a per diem basis by multiplying the per diem fee applicable to him/her on that anniversary of birth by:

(i) the number of days in that 12 months on which he/she was paid for holding that office or position, including days not worked in the office or position that attracted compensation payments; or

(ii) if the office or position had been held for less than 12 months preceding that anniversary of birth:

(A) the number of days, if any, on which he/she was paid for holding that office or position, including days not worked in the office or position that attracted compensation payments; and

(B) the number of days on which the per diem fee would have been paid, or which would have attracted compensation payments in respect of any days not worked in the office or position, if the pattern of expected payments applied in the remainder of a 12 month period;

or

(c) the higher of the salaries for average salary purposes calculated under paragraphs (a) or (b) of Rule 3.6.2 on any previous anniversary of birth on which he/she was a casual member not paid on a per diem basis; or

(d) if, during his/her period of membership, he/she has been a regular member on an anniversary of his/her birth occurring immediately before becoming a casual member, the greater of:

(i) the sum of his/her annual basic salary and recognised allowances, if any, payable as for full time work; and

(ii) the sum of his/her annual maintained basic salary and maintained recognised allowances, if any (see Division 3 of this Part); and

(iii) his/her annual CSS salary, if any (see Division 4 of this Part);

applicable on that anniversary of birth.

CSC may use alternative salary for average salary purposes

3.6.4 CSC may decide to use an alternative average salary in circumstances in which it considers that the average salary calculated above is not in accordance with the spirit of the Rules and would lead to inequitable treatment between members.

When last day of membership counts as a birthday

3.6.5 A casual members last day of membership which occurs immediately before the anniversary of his/her birth is counted as an anniversary of his/her birth.

Birthdays and salary when a member of the CSS scheme

3.6.6 If a casual member was an eligible employee for the purposes of the Superannuation Act 1976 immediately before becoming a member, the anniversaries of birth last occurring before becoming a member, together with the annual rate of salary applicable under section 5 of that Act to the person on those days, or any higher salary in respect of which the person was contributing because of section 47 of that Act, will be taken into account, if required, to calculate average salary.  The day of becoming an eligible employee counts as an anniversary of birth.

Leap year birthdays

3.6.7 If a casual member was born on 29 February his/her anniversary of birth in any year that is not a leap year is taken to occur on 1 March.

 

Part 4 contributions

Division 1

When contributions must be made

4.1.1 A member must pay contributions on each contribution day occurring during his/her period of membership, except contribution days occurring:

(a) on or after becoming a maximum benefits member (see Rule 4.1.5); or

(b) during a continuous period of leave of absence without pay that:

(i) starts before 1 July 2003, provided that any extension to a period of leave of absence shall be treated as a period of leave of absence that starts on the date the extension was granted; and

(ii) exceeds 12 weeks; and

(iii) is not an excluded period of leave of absence (see Rule 4.2.1); or

(c) during a continuous period of leave of absence without pay where:

(i) the period of leave of absence:

(A) starts on or after 1 July 2003, provided that any extension to a period of leave of absence shall be treated as a period of leave of absence that starts on the date the extension was granted; and

(B) exceeds 12 weeks; and

(C) is not an excluded period of leave of absence (see Rule 4.2.1); and

(ii) the members usual employer, or the Secretary if the member is employed in a Department, has stopped making payments to the Commonwealth in respect of benefits that become payable under the Rules to or in respect of the member; or

(d) during a period of maternity or parental leave of absence without pay, unless the member has chosen to pay contributions (see Rule 4.2.6); or

(e) when the PSS Fund is prohibited by the SIS Act from receiving those contributions (see Rule 4.1.5).

What rate of contributions can be paid

4.1.2 A member may choose to pay contributions at 0% or at any whole percentage rate that is between 2% and 10% (inclusive), of his/her fortnightly contribution salary, unless he/she is on compensation leave (see Rule 4.1.4).  A member who does not choose a contribution rate will be deemed to have chosen the rate of 5% except where:

(a) the member is entitled to a CSS Transfer Multiple (see Rule 14.4.4); or

(b) CSC allows the member to choose a different contribution rate for arrears; or

(c) immediately before 1 July 2008, he/she was paying contributions at 0% as a result of transitional arrangements applying in respect of a member with a Former MBL multiple; or

Note:  The transitional arrangements referred to in paragraph (c) were in force for the period 1 January 2008 to 30 June 2008 to effectively provide that a member who was a maximum benefits member immediately before 1 January 2008 (but is no longer a maximum benefits member as at that date) will be taken to be paying contributions at 0% unless they choose to pay contributions at another rate permitted by the Rules as they applied at the relevant time.

On or after 1 July 2008, members can generally choose to pay contributions at 0%, or at any whole percentage rate between 2% and 10% inclusive, under Rules 4.1.2 and 4.1.3.

(d) he/she reached age 70 before 1 July 2011.

Note:  Before 1 July 2011 members aged 70 or over could not make contributions under Part 4. However, they could choose to pay additional contributions at any whole percentage rate between 2% and 10% inclusive under Division 4 of Part 11.

From 1 July 2011, members aged 70 or over must contribute 0% or between 2% and 10% of fortnightly contribution salary under Part 4 until age 75. However, members aged 70 or over cannot make additional contributions under Division 4 of Part 11.

Rule 4.1.10 provides that those members aged 70 or over who chose to pay additional contributions before 1 July 2011, and were doing so immediately before 1 July 2011, will contribute under Part 4 at the same rate from 1 July 2011 (unless or until a different rate is chosen).

Rule 4.1.11 provides that those members aged 70 or over who chose not to pay additional contributions before 1 July 2011 will contribute at the rate of 0% of fortnightly contribution salary from 1 July 2011 (unless or until a different rate is chosen).

4.1.3 A member may change his/her rate of contributions at any time to 0% or to another whole percentage rate that is between 2% and 10% (inclusive) of his/her fortnightly contribution salary.  Changes take effect on the contribution day occurring immediately after the date of the member’s request to change his/her rate of contributions.

4.1.4 A member on compensation leave may choose to pay contributions at any whole percentage rate that is between 5% and 10% (inclusive) of his/her fortnightly contribution salary, except where:

(a) he/she contributed below 5% on each of the four contribution due days
immediately preceding the period of compensation leave - in which case,
subject to paragraph (b), the minimum rate payable is the highest rate at which contributions were paid on any of those four contribution days; or

(b) he/she contributed 0% on each of the four contribution due days immediately preceding the period of compensation leave - in which case, the minimum rate payable is 2%.

 

EXAMPLES – Contributions % Range Allowed on Compensation Leave

 

 

Contribution Due Days

Before Leave

% Range allowed

 

 

1st

2nd

3rd

4th

 

 

% Paid

7%

7%

8%

9%

5% to 10%

 

% Paid

3%

6%

2%

3%

5% to 10%

 

% Paid

2%

4%

3%

2%

4% to 10%

 

% Paid

3%

0%

0%

0%

3% to 10%

 

% Paid

0%

0%

0%

0%

2% to 10%

 

Contributions not allowed to be paid

4.1.5 A member is not permitted to pay contributions under this Part in respect of any contribution day occurring:

(a) after he/she becomes a maximum benefits member; or

(b) when the PSS Fund is prohibited by the SIS Act from receiving those contributions.

Contributions to be paid to CSC

4.1.6 Contributions payable by members under these Rules are to be paid to CSC by or on behalf of the member liable to pay the contributions. CSC must pay into the PSS Fund all contributions it receives from, or on behalf of, members.

Substitution of contribution days

4.1.7 CSC and a designated employer may agree to substitute other days in lieu of contribution days for payments of contributions if the designated employer does not pay members in respect of each fortnight ending on the day before a contribution day.  CSC will adjust the calculation and payment of contributions as necessary.

CSC to allow members to choose a contribution rate for arrears in certain circumstances

4.1.8 Subject to Rule 4.1.9, CSC may allow a member to choose to pay contributions at a whole percentage rate that is not less than 2% of his/her fortnightly contribution salary in respect of the contribution due days occurring during a period in which:

(a) the member did not commence to make contributions;

(b) the member is required to pay in arrears the amount of member contributions due; and

(c) his/her designated employer is required to pay in arrears the amount of funded productivity contributions due in relation to the member.

Transitional arrangements for members who were maximum benefits members immediately before 1 January 2008

4.1.9 A member who was a maximum benefits member immediately before 1 January 2008 will pay contributions at the rate of 0% of his/her fortnightly contribution salary from 1 January 2008 until a change to the member's rate of contributions takes effect in accordance with Rule 4.1.3 (if any).

Transitional arrangements for members who reached age 70 before 1 July 2011

4.1.10 A member who has reached age 70 before 1 July 2011, and who was paying additional contributions (see Division 4 of Part 11) immediately before 1 July 2011, will pay contributions from 1 July 2011 at the rate applicable to those additional contributions (see Rule 11.4.3) until a change to the member’s rate of contributions takes effect in accordance with Rule 4.1.3 (if any).

4.1.11 A member who has reached age 70 before 1 July 2011, and who was not paying additional contributions (see Division 4 of Part 11) immediately before 1 July 2011, will pay contributions from 1 July 2011 at the rate of 0% of his/her fortnightly contribution salary until a change to the member’s rate of contributions takes effect in accordance with Rule 4.1.3 (if any).

 

Division 2

When contributions are payable on leave without pay

4.2.1 Except where Rule 4.1.4 applies, subject to the SIS Act, a member on leave of absence without pay for a continuous period exceeding 12 weeks that is an excluded period of leave of absence as set out in the following paragraphs, is required to pay contributions at any whole percentage rate that is between 2% and 10% (inclusive) of his/her fortnightly contribution salary on each contribution day occurring during the period of leave.  For the avoidance of doubt, this Rule applies despite any current choice of the member for his/her rate of contributions to be 0% under Rule 4.1.3, or where Rule 4.1.9 applies to the member, before the period of leave of absence, but does not apply where Rule 4.1.9 applies to the member where the period of leave of absence had already commenced.:

(a) a period referred to in Rule 4.2.8;

(b) a period of sick leave without pay;

(c) a period of compensation leave granted under the Safety, Rehabilitation and Compensation Act 1988 or the Military Rehabilitation and Compensation Act 2004, or under similar arrangements.

(d) paragraph deleted in the 18th Amending Deed;

(e) a period of leave of absence for the purpose of engaging in other employment (other than employment by an organisation specified in paragraph 4.2.1(f)) if the temporary employer complies with the requirements of Rule 4.2.2 and:

(i) if the person is employed in an APS Agency the Agency Head (within the meaning of the Public Service Act 1999) of the Agency is satisfied that the engagement of the person in the other employment is in the interest of the Australian Public Service; or

(ii) in respect of any other person the persons usual employer is satisfied that the engagement of the person in the other employment is in the usual employers interest;

(f) a period of leave of absence for the purpose of engaging in employment with:

(i) an organisation or association registered or recognised under the Fair Work (Registered Organisations) Act 2009 the membership of which includes people who are members of the CSS scheme or of the PSS scheme or of the PSSAP; or

(ii) a body consisting of such organisations;

if the member is not required to contribute under a superannuation arrangement maintained by the temporary employer and the temporary employer complies with the requirements of Rule 4.2.2;

(g) a period of leave of absence that is covered by an agreement made (whether before or after the end of the period) between the Minister and CSC declaring the period to be an excluded period of leave of absence.  An agreement made under this provision may be subject to any conditions that are set out in the agreement and if the conditions are not met the period, or part of the period, to which they apply is not to be taken to be an excluded period of leave of absence. Any agreement made may be varied or terminated by the Minister and CSC together at any time.

 

Note:  The effect of this rule is that where a member is on a leave of absence without pay for a continuous period exceeding 12 weeks that is an excluded period of leave of absence, the member must pay contributions at a rate of between 2% and 10% (inclusive), even though the member may be paying contributions at 0% just prior to the period of leave.  However, in relation to compensation leave, the requirements in Rule 4.1.4 will also apply in relation to the contributions percentage rate allowed.

After the relevant period of leave has ended, the member will be able to recommence paying 0% without having to make a further request to choose that contribution rate.

One exception to the rule is in relation to where a former maximum benefits member had already commenced a relevant period of leave without pay at the time the transitional arrangements in Rule 4.1.9 come into effect.

 

4.2.1A A member who was paying contributions at 0% but is required to pay contributions at another rate under Rule 4.2.1, and does not choose a contribution rate, will be taken to have chosen to contribute at a rate of 5%.

Rates of contributions payable on leave without pay

4.2.2 A person on leave without pay may not pay contributions under paragraph (e) or (f) of Rule 4.2.1 unless the temporary employer makes payments:

(a) of productivity contributions under Rule 4.3.1; and

(b) where applicable, contributions for death and invalidity cover; and

(c) of such amounts, or at such rates, and at such times as are determined by:

(i) the Government of the Australian Capital Territory in respect of persons usually employed by that Government or an authority or body established by or under a law of the Australian Capital Territory; or

(ii) the usual employer in respect of persons employed by:

(A) an approved authority; or

(B) another authority or body referred to in subsection 19(1) of the Superannuation Act 1990; or

(C) an authority or body not included in (A) or (B) declared by the Minister to be an authority or body for this purpose; or

(iii) the Minister in respect of persons ordinarily employed by a Department or any other organisation not included in (A), (B) or (C) above;

The Minister and CSC may agree to modifications in respect of the period, or a part of the period, of leave of absence granted to a person.

4.2.3 Productivity contributions under Rule 4.3.1, contributions for death and invalidity cover, where applicable, and other payments under Rule 4.2.2 must be paid to the employer that determines the amounts or rates of payment, or the Commonwealth in respect of persons ordinarily employed by a Department.

Maternity and parental leave without pay contributions are optional

4.2.4 A member on maternity or parental leave of absence without pay taken in relation to:

(a) the birth of a child of the member; or

(b) because a members pregnancy ended for other reasons; or

(c) the adoption of a child by the member;

may, unless a special arrangement is in force under rule 4.2.7, choose to pay contributions on any contribution day occurring during the period of leave provided he/she exercises the choice on or before the particular contribution day.  A member who chooses to pay contributions on a contribution day under this Rule, must choose to pay those contributions at any whole percentage rate that is between 2% and 10% (inclusive) of his/her fortnightly contribution salary.  This requirement applies despite any current choice of the member for his/her rate of contributions to be 0% under Rule 4.1.3, or where Rule 4.1.9 applies to the member, before the period of maternity or parental leave, but does not apply where Rule 4.1.9 applies to the member where the period of maternity or parental leave had already commenced.

 

Note:  The effect of this rule is that where a member is on maternity or parental leave and elects to pay contributions, the member must pay contributions at a rate of between 2% and 10% (inclusive), even though the member may be paying contributions at 0% just prior to the period of leave.

After the relevant period of leave has ended, the member will be able to recommence paying 0% without having to make a further request to choose that contribution rate.

One exception to the rule is in relation to where a former maximum benefits member had already commenced a relevant period of leave without pay at the time the transitional arrangements in Rule 4.1.9 come into effect.

 

4.2.4A The reference in Rule 4.2.4 to the birth of a child of the person includes a reference to the birth of a child who is a child of the person within the meaning of the Family Law Act 1975.

Special arrangements for contributions on leave without pay or less than full pay

4.2.5 CSC may approve special arrangements relating to:

(a) the timing of payments; or

(b) payment by instalments;

of any contributions payable by a member on leave of absence, either without pay or with less than full pay.

Re-instatement of certain members

4.2.6 If a person again becomes a member because of having been, or having been deemed to be, re-appointed or re-employed in circumstances similar to:

(a) the circumstances in which a person could have been re-appointed to the Australian Public Service under section 63F, 63G or 66B of the Public Service Act 1922, as in force immediately before its repeal; or

(b) the circumstances in which a person could have been deemed to have been reappointed to the Australian Public Service in accordance with section 87K, 87M, 87P or 87Q of the Public Service Act 1922, as in force immediately before its repeal;

and he/she has been deemed under Rule 2.2.4 not to have ceased membership, the period between the termination of his/her appointment or employment and his/her re-appointment or reemployment is regarded as a period of leave without pay exceeding 12 weeks.

Leave without pay savings provisions

4.2.7 Any period of leave of absence without pay that commenced before 1 July 1994 is subject to the conditions and directions by the Board that applied until 30 June 1994.  This provision does not apply to an extension of that period of leave without pay where the extension is granted on or after 1 July 1994.

4.2.8 Any period that commenced before 1 July 1995 that was an excluded period of leave of absence under the then Rules because the members liability to contribute was deferred while he/she was liable to make contributions under:

(a) the Defence Force Retirement and Death Benefits Act 1973; or

(b) the superannuation scheme established by the Trust Deed under the Military Superannuation and Benefits Act 1991;

continues to be an excluded period of leave of absence and:

(i) the members liability to contribute as deferred under the then Rules continues to be deferred until such time as that deferral would have ceased under those Rules; and

(ii) the deferred contributions become payable by the member in the circumstances under which they would have been payable under those Rules.

 

 

 

 

 

 

 

 

 

Need more help with contributions?

 

 

 

 

 

 

 

 

 

In certain circumstances, a member may be able to choose to pay contributions at 0%.  However, this will not be the case in all circumstances – see Notes below.

 

 

Contributions have to be paid

Contributions usually cannot be paid

 

 

 while the member is working with his/her normal employer

 for leave without pay for personal or recreational reasons exceeding 12 weeks

 

 

 for sick leave whether on full pay, half pay or without pay

Contributions can be paid

 for maternity or parental leave

 for study leave

 

 

 for compensation leave

 

 

 for leave without pay for less than 12 weeks, other than maternity leave or parental leave

 

 

Premiums for any additional death and invalidity cover arranged under Part 10 do not affect the maximum % rate payable, ie, the member can still pay 10% as well as contributing for additional cover premium.

 

 

Contributions usually have to be paid

 

 

 for leave granted specifically to work with another employer when granted in the interests of the permanent employer and the temporary employer meets the employer liability

 

 

Note: For sick leave, compensation leave and leave granted to work with another employer (as above), members are not able to choose to pay contributions at 0%.

Note: For maternity/parental leave and study leave, members who elect to pay contributions are not able to choose to pay those contributions at 0%

 

 

 

Division 3

When are productivity contributions payable

4.3.1 A designated employer is required to pay to CSC a fortnightly productivity contribution in relation to a member on each contribution due day the member is employed by that designated employer.

 

Note:

A contribution due day is a day on which a member is required to pay contributions or a day on which a member is a no-TFN member or a zero contributions member and would have been required to pay contributions if they were not a no-TFN member or zero contributions member respectively.

Amount of productivity contributions

4.3.2 The amount of the fortnightly productivity contribution payable in relation to a member is to be determined in accordance with Rules 4.3.5 to 4.3.7, having regard to the Fortnightly Amount shown opposite the Amount of Applicable Fortnightly Rate of Salary in the following Table (as amended by determination of CSC under Rule 4.3.3 from time to time).

 

Amount of Applicable Fortnightly Rate of Salary

 

Fortnightly Amount

Less than $985.33

 

$29.56

$985.33 or more but less than $1,587.33

 

The amount that is 3% of the members  salary per fortnight

$1587.33 or more but less than $2,381.00

 

$47.62

$2,381.00 or more

 

The amount that is 2% of the members  salary per fortnight

4.3.3 CSC will, by determination, amend the amounts shown in the Table Productivity Contribution Rates in Rule 4.3.2 with effect from 1 July each year to reflect changes, if any, in the general salary levels of members.

4.3.4 If CSC and a designated employer have agreed under Rule 4.1.7 to substitute other days in lieu of contribution days for payments of contributions by or on behalf of members, CSC will assess the productivity contribution payable each substituted day in accordance with the formula:

Productivity Contribution  X  Pay Period
                                                  14

where:

Productivity Contribution is the fortnightly productivity contribution in accordance with the Table Productivity Contribution Rates in Rule 4.3.2 in respect of the member; and

Pay Period is the number of days between substituted payment days plus one day.

Regular member now regular member last birthday

4.3.5 The amount of the fortnightly productivity contribution payable in relation to a member on a contribution due day who:

(a) is a regular member on the contribution due day; and

(b) was a regular member on his/her last birthday;

is determined in accordance with:

(i) the Applicable Fortnightly Rate of Salary and the corresponding Applicable Fortnightly Rate of Productivity Contribution that was applicable to the member on his/her last birthday as determined from the following Table; and

(ii) the associated Amount of Applicable Fortnightly Rate of Salary and Fortnightly Amount in the Table Productivity Contribution Rates (as amended by determination of CSC under Rule 4.3.3 from time to time) in Rule 4.3.2.

 

Table Applicable Fortnightly Salary and Fortnightly Amount Productivity Contributions Regular Member Now and Regular Member Last Birthday

Membership  Status

 

Applicable Fortnightly Rate of  Salary

 

Applicable Fortnightly Rate
of Productivity Contributions

permanent full-time employee or temporary full-time employee, not receiving partial invalidity pension

 

one 26th of his/her salary for average salary purposes under Rule 3.5.2 on the later of:

(a) his/her last birthday; or

(b) the date of first becoming a member; or

(c) the date of last becoming a member, if he/she has become a member on more than one occasion.

 

the Fortnightly Amount opposite the Amount of Applicable Fortnightly Rate
of Salary in the Table Productivity Contribution  Rates in Rule 4.3.2

 

 

 

 

 

Continued…

Continued

Table Applicable Fortnightly Salary and Fortnightly Amount Productivity Contributions Regular Member Now and Regular Member Last Birthday

Membership  Status

 

Applicable Fortnightly Rate of  Salary

 

Applicable Fortnightly Rate
of Productivity Contributions

permanent full-time employee or temporary full-time employee, receiving partial invalidity pension

 

one 26th of the maintained basic salary and maintained recognised allowances, if any, applicable to the member on his/her last birthday (for maintained salary see Division 3 of Part 3)

 

the Fortnightly Amount opposite the Amount of Applicable Fortnightly Rate
of Salary in the Table Productivity Contribution  Rates in Rule 4.3.2

permanent part-time employee or temporary part-time employee, not receiving partial invalidity pension

 

the fortnightly contribution salary that would have been applicable if the member had been working full-time on his/her last birthday

 

the Fortnightly Amount opposite the Amount of Applicable Fortnightly Rate
of Salary in the Table  Productivity Contribution  Rates in Rule 4.3.2 multiplied by

PTH
FTH

permanent part-time employee or temporary part-time employee, receiving partial invalidity pension

 

one 26th of the greater of:

(a) the sum of his/her annual rate of basic salary and recognised allowances, if any, payable as for full-time work; or

(b) the sum of his/her maintained basic salary and maintained recognised allowances, if any (for maintained salary see Division 3 of Part 3); or

(c) his/her annual CSS salary, if any (see Division 4 of Part 3);

applicable to the member on his/her last birthday

 

the Fortnightly Amount opposite the Amount of Applicable Fortnightly Rate
of Salary in the Table  Productivity Contribution  Rates in Rule 4.3.2  multiplied by

PTH
FTH

Where:

PTH      is the number of hours being worked part-time (including any hours not being worked that attracted compensation payments, or in respect of which a  partial invalidity pension was payable) on the members last birthday; and

FTH      is the number of hours that would have been worked on the members last birthday if he/she had been working full-time.

Regular member now casual employee last birthday

4.3.6 The amount of the fortnightly productivity contribution payable in relation to a member on a contribution due day who:

(a) is a regular member on the contribution due day; and

(b) was a casual member on his/her last birthday;

is determined in accordance with:

(i) the Applicable Fortnightly Rate of Salary and the corresponding Applicable Fortnightly Rate of Productivity Contribution that was applicable to the member on his/her last birthday as determined from the following Table; and

(ii) the associated Amount of Applicable Fortnightly Rate of Salary and Fortnightly Amount in the Table Productivity Contribution Rates (as amended by determination of CSC under Rule 4.3.3 from time to time) in Rule 4.3.2.

 

Table — Applicable Fortnightly Salary and Fortnightly Amount — Productivity Contributions Regular Member Now and Casual Member Last Birthday

Membership Status

 

Applicable Fortnightly Rate of  Salary

 

Applicable Fortnightly Rate of Productivity Contributions

permanent full-time employee, temporary full-time employee, permanent part-time employee, or temporary part-time employee, who was a casual member not paid on a per diem basis on his/her last birthday 

 

one 26th of his/her salary for average salary purposes under Rule 3.6.2 on the later of:

(a) his/her last birthday; or

(b) the date of first becoming a member; or

(c) the date of last becoming a member, if he/she has become a member on more than one occasion.

 

the Fortnightly Amount opposite the Amount of Applicable Fortnightly Rate
of Salary in the Table Productivity Contribution Rates in Rule 4.3.2
multiplied by

RFCS
AFR

Continued…

 

Continued

Table Applicable Fortnightly Salary and Fortnightly Amount Productivity Contributions Regular Member Now and Casual Member Last Birthday

permanent full-time employee, temporary full-time employee, permanent part-time employee, or temporary part-time employee, who was a casual member paid on a per diem basis on his/her last birthday

 

one 26th of his/her salary for average salary purposes under Rule 3.6.3 on the later of:

(a) his/her last birthday; or

(b) the date of first becoming a member; or

(c) the date of last becoming a member, if he/she has become a member on more than one occasion.

 

the Fortnightly Amount opposite the Amount of Applicable Fortnightly Rate
of Salary in the Table Productivity Contribution  Rates in Rule 4.3.2 multiplied by

RFCS
AFR

Where:

AFR       is the Applicable Fortnightly Rate of  Salary for the member;
RFCS     is the members fortnightly contribution salary on last becoming a regular member.

Casual member now

4.3.7 The amount of the fortnightly productivity contribution payable in relation to a member on a contribution due day who is a casual member is the fortnightly amount that is determined in accordance with:

(i) the Applicable Fortnightly Rate of Salary and the corresponding Applicable Fortnightly rate of Productivity Contribution applicable to the member on his/her last birthday as determined from the following Table; and

(ii) the associated Amount of Applicable Fortnightly Rate of Salary and Fortnightly Amount in the Table Productivity Contribution Rates (as amended by determination of CSC under Rule 4.3.3 from time to time) in Rule 4.3.2.


Table Applicable Fortnightly Salary and Fortnightly Amount Productivity Contributions Casual Member Now

Membership Status

 

Applicable Fortnightly Rate of  Salary

 

Applicable Fortnightly Rate of Productivity Contributions

casual member not paid on a per diem basis

 

one 26th of his/her salary for average salary purposes under Rule 3.6.2 on the later of:

(a) his/her last birthday; or

(b) the date of first becoming a member; or

(c) the date of last becoming a member, if he/she has become a member on more than one occasion.

 

the Fortnightly Amount opposite the Amount of Applicable Fortnightly Rate of Salary in the Table Productivity Contribution  Rates in Rule 4.3.2 multiplied by

FCS
AFR

casual member paid on a per diem basis

 

one 26th of his/her salary for average salary purposes under Rule 3.6.3 on the later of:

(a) his/her last birthday; or

(b) the date of first becoming a member; or

(c) the date of last becoming a member, if he/she has become a member on more than one occasion.

 

the Fortnightly Amount opposite the Amount of Applicable Fortnightly Rate of Salary in the Table Productivity Contribution  Rates in Rule 4.3.2 multiplied by

FCS
AFR

Where:

FCS       is the members fortnightly contribution salary;
AFR      is the Applicable Fortnightly Rate of  Salary.  

4.3.8 Rule deleted in the 10th Amending Deed.

4.3.9 Rule deleted in the 10th Amending Deed.

4.3.10 Rule deleted in the 10th Amending Deed.

Contributions to be paid to CSC

4.3.11 All productivity contributions payable by designated employers under the Rules are to be paid to CSC which must pay them into the PSS Fund.


 

PART 5 benefits

Note:  Benefits in respect of amounts transferred into the PSS scheme are not included in a Benefit Accrual Multiple.  These benefits are covered in Part 11.  A maximum benefit can be affected by a benefit in respect of an amount transferred into the PSS before 31 December 1995 if a pension becomes payable see Rule 11.3.10.

Division 1

Members benefit accruals

5.1.1. A benefit accrual in relation to a member on a day is:

(a) if he/she is not a maximum benefits member, his/her Benefit Accrual Multiple (see Divisions 2 and 3 of this Part) multiplied by his/her average salary; or

(b) if he/she is a maximum benefits member, his/her maximum benefit (see Division 6 of this Part).

5.1.2 Benefits do not accrue to members if the accrual is prohibited by the SIS Act.

Former members benefit accruals

5.1.3 A final benefit accrual in relation to a former member is:

(a) if he/she was not, at the time of ceasing membership, a maximum benefits member, his/her Benefit Accrual Multiple (see Divisions 2 and 3 of this Part) multiplied by his/her final average salary; or

(b) if he/she was, at the time of ceasing membership, a maximum benefits member, his/her maximum benefit (see Division 6 of this Part).

5.1.4 An invalidity benefit accrual in relation to a former member is:

(a) if he/she was not, at the time of ceasing membership, a maximum benefits member, his/her final average salary multiplied by the sum of his/her Benefit Accrual Multiple (see Divisions 2 and 3 of this Part) and Invalidity Multiple (see Divisions 4 and 5 of this Part); or

(b) if he/she was, at the time of ceasing membership, a maximum benefits member, his/her maximum benefit (see Division 6 of this Part).

5.1.5 A death benefit accrual in relation to a deceased member is:

(a) if he/she:

(i) died on or after age 60; or

(ii) was a limited benefits member at the date of death;

his/her final benefit accrual (see Rule 5.1.3); and

(b) if he/she:

(i) died before age 60; and

(ii) was not a limited benefits member at the date of death;

his/her invalidity benefit accrual (see Rule 5.1.4).

Adjustment of benefit accruals where substituted contribution days apply

5.1.6 If CSC and the designated employer agreed under Rule 4.1.7 to substitute other days for contribution days for the payment of contributions by or on behalf of the member, CSC will, as necessary, adjust the calculation of the components of the benefit accruals in respect of the member under this Part in accordance with the frequency with which the substituted days occurred.


Division 2

Calculating benefit accrual multiples

5.2.1 The Benefit Accrual Multiple applicable to a regular member is the sum of any of the multiples applicable to him/her under this Division.

Quick Guide to the Components of a Benefit Accrual Multiple

 

Possible Components

Results from

See Rule

 

On-going Multiple

Paying fortnightly contributions

5.2.2

 

Additional Cover
Multiple

An amount received from a life office in respect of a policy for extra death and invalidity cover

5.2.10

 

Preserved Multiple

A preserved benefit from a previous period of PSS membership

5.2.12

 

Restoration Multiple

A former invalidity pensioner again becoming a member

5.2.14

 

Excess Contribution Multiple

Paying fortnightly contributions above the maximum average rate that attract employer benefits

5.2.16

 

Unfunded Transfer
Multiple

An amount transferred on entry to the PSS scheme  that is exclusively productivity benefit

5.2.18

 

Membership Transfer Multiple

Combining benefits from previously concurrent periods of membership

5.2.20

 

CSS Transfer Multiple

Transferring entitlements from the CSS scheme

5.2.22

 

Non-Cash Transfer Multiple

An amount that would otherwise have been payable to an approved superannuation scheme in respect of a person who had transferred to that scheme from the PSS scheme or the CSS scheme

5.2.23

 

Reduction Multiple

The application of a splitting agreement or splitting order under Part 16.

5.2.26

 

Former MBL Multiple

A member who was a maximum benefits member immediately before 1 January 2008

5.2.27

 

On-going Multiple

5.2.2 The Ongoing Multiple applicable to a regular member on a day is the lesser of:

(a) the sum of his/her Fortnightly Contribution Accruals (see Rule 5.2.3); or

(b) his/her Average Accrual (see Rule 5.2.4).

Fortnightly contribution accrual

5.2.3 A Fortnightly Contribution Accrual is applicable to a regular member on each contribution due day he/she pays, or is required to pay, fortnightly contributions or is a
no-TFN member or a zero contributions member and would have been required to pay contributions if they were not a no-TFN member or zero contributions member respectively.


A Fortnightly Contribution Accrual is calculated using the following formula:

 

where:

 

Factor for a member who was a permanent full-time employee or a temporary full-time employee on his/her last birthday is 1; and

 

 for a member who was a permanent part-time employee or a temporary part-time employee on  his/her last birthday is the ratio that the number of part-time hours worked by the member on his/her last birthday bears to the number of hours a permanent full-time employee performing duties of a similar nature would have worked on that day.

 

 Part-time hours worked in this definition:

 

(a) include any hours not being worked that attract a partial invalidity pension or compensation payment; and

 

(b) if the member did not work on his/her last birthday, are the part-time hours he/she would have worked if he/she had been on duty; and

 

(c) if the member was on leave of absence without pay that is an excluded period of leave of absence on his/her last birthday, are the part time hours he/she worked, or would have worked if he/she had been on duty, on the last birthday with his/her permanent employer.

Note:  A full time employee on an excluded period of leave of absence remains a permanent or a temporary full-time employee for the purposes of the Rules.  A factor of 1 therefore applies in respect of the period of leave of absence if all requirements about contributions have been met, regardless of the hours worked with the temporary employer.

Contribution Paid is the amount of contributions paid, or payable, by the member on the contribution due day, or on each contribution due day that a member is a no-TFN member or a zero contributions member, 0%; and

 

Annual Contribution Salary is the members fortnightly contribution salary on his/her last birthday multiplied by:

 

(i) if the member was a permanent full-time employee or a temporary full-time employee 26; or

 

(ii) if the member was a permanent part-time employee or a temporary part-time employee, in receipt of partial invalidity pension 26; or

 

(iii) if the member was a permanent part-time employee or a temporary part-time employee, not in receipt of partial invalidity pension 26 and by the ratio that the hours a permanent full-time employee performing duties of a similar nature to the member would have worked bears to the part-time hours worked (including hours not being worked that attract a compensation payment) by the member on that day.

 

 

The following chart shows the approximate percentage of average salary that would be accrued if contributions were paid at the same rate for a whole year by a full-time regular member