SUPERANNUATION

Choice of Superannuation Fund

Choice of superannuation fund is available to all employees unless the employee falls within a category of employees where the employer is not obliged to offer choice of superannuation fund.

Choice of superannuation fund is now available to all Australian Government employees. Different arrangements apply to CSS and PSSdb members.

CSS members can cease making member contributions to the CSS and have the option to contribute to a superannuation fund of their choice.  Contributions to other superannuation funds can be after tax (non concessional) or before tax in the form of salary sacrifice contributions (concessional).  No additional employer contributions are paid in respect of CSS members choosing another superannuation fund as the employer is still required to pay employer contributions of around 28% of salary to the Government.

PSSdb and PSSap members can choose to leave the PSSdb or PSSap and join a superannuation fund of their choosing.  The employer is only obligated to make employer contributions of at least the level of the superannuation guarantee which is 9% of ordinary times earnings.  Note that the employer contribution required for the PSSdb and PSSap is much higher, that is, around 15.6% of salary for the PSSdb and 15.4% of salary for the PSSap. 

Choice of superannuation fund is not available where the employer is required to make contributions to a particular superannuation fund specified in a certified agreement, employment contract, or State or industrial award. Certain members of employer sponsored defined benefit funds may not be able to choose an alternative superannuation fund.