ACT PUBLIC SECTOR

CLOSING OFF OF ACCESS TO THE PUBLIC SECTOR SUPERANNAUTION ACCUMULATION PLAN (PSSAP) TO NEW STAFF

ARRANGEMENTS TO CONTINUE PSSAP COVERAGE FOR EXISTING TEMPORARY STAFF WHO ARE PSSAP MEMBERS

·  HR Managers

PURPOSE

To advise agencies that membership of the PSSAP has been closed to new staff, and to provide advice about a new Public Sector Management Standard that has been made to allow existing temporary employees to continue as members of the PSSAP.

BACKGROUND

Governance Division Advice No 9 issued in June 2006 informed agencies that the Treasurer had written to the Commonwealth Minister for Finance and Administration seeking a written declaration closing off access to the PSSAP.

·  This was necessary to implement the 2006/07 budget decision to reduce the employer contribution rate for new starters from 15.4% to a minimum 9%.

Governance Division Advice No 11 issued in June 2006 advised agencies that there were significant numbers of temporary and casual staff who were members of schemes other than PSSAP and informed agencies of the need to ensure that all temporary and casual staff employed from 1 July 2005 were given the opportunity to join PSSAP while it remained open.

ISSUES

Agencies were informally advised on 28 September 2006 that the Commonwealth Minister for Finance and Administration had made the declaration closing off access to the PSSAP to new employees (note that this does not include some agencies, such as the Legal Aid Commission).

Access to the PSSAP was formally closed for new ACTPS staff on and from 6 October 2006, as the declaration was notified on the Federal Register of Legislative Instruments on this date. Accordingly, from 6 October 2006, new staff employed by the ACTPS are not eligible to become members of the PSSAP.

Unless they are CSS or PSS members, all new staff employed by the ACTPS on or from 6 October 2006 are to be paid a minimum superannuation employer contribution rate of 9% to a nominated eligible fund, or if no nomination is made by the employee, to the ACT Government default fund, First State Super.

Employees may elect to contribute a minimum of 3% of their own salary to their superannuation fund. In this case, the employer contribution rate rises to 10%.

From 6 October 2006 existing temporary and casual staff who are not members of the PSSAP can no longer elect to become PSSAP members.

A Public Sector Management Standard has been made with effect from 6 October 2006 to ensure that existing temporary and casual staff who were already PSSAP members on that date are considered to have ‘continuity of employment’ when they enter into a new period of employment (note that for casual employees, this will occur at the commencement of their next shift, and for temporary employees, this will occur on renewal of their contract). The Standard means that these staff can remain members of PSSAP, with the employer contribution rate continuing at 15.4%

The Standard applies to a temporary or casual employee who:

·  enters into a new term of employment in the ACTPS without a break from their previous term of employment (i.e. new term commences on the next business day); or

·  continues to be employed in the ACTPS on a regular and systematic basis. The Standard provides that a temporary/casual is employed on a “regular and systematic” basis if the person is employed in accordance with a regular work schedule or regular pattern of work, has a reasonable expectation of continuing employment with the ACTPS on this basis, and does not engage in outside employment between periods of ACTPS employment without the agreement of the relevant Chief Executive. This will cover, for instance, many long-term casual staff engaged under a regular work schedule.

The Standard also includes a limited discretion for the Commissioner for Public Administration to apply the Standard to other employees (where they are existing PSSAP members as a result of ACT Government employment), having regard to the particular circumstances of an employee’s employment. Overall, the Commissioner will consider the nature of the employment arrangement and make a determination about whether, in all the circumstances, the employment relationship is to be viewed as ongoing.

The new Public Sector Management Standard is attached, and will be available on the ACT Legislation Register shortly.

Should you wish to discuss any element of this advice please contact Peter Gillin on

620 50307.

APPROVAL AUTHORITY

Catherine Hudson

Deputy Director General, Workforce Capability Governance Division

October 2006

Document Name: Superannuation: Transition to Retirement Arrangements

Prepared by: Senior Manager, Workplace Relations, Office of Industrial Relations

Version: Number 1

Feedback to:

Issue Date: October 2006