Submission to the Review of Indexation Arrangements in Australian ...

Government, who were not CSS or PSS members, were provided with at least the
Superannuation Guarantee level of employer superannuation, usually through a
funded superannuation scheme
More recently, the Australian Government has established its own fully funded
accumulation scheme, the Public Sector Superannuation Accumulation Plan (PSSAP).
The PSSAP was open to new employees from 1 July 2005. The employer
contribution rate for members of the PSSAP is 15.4% of the member’s
superannuation salary.
Other Australian Government superannuation arrangements
The Australian Government also has superannuation schemes for other classes of
employees, such as defence force personnel, Parliamentarians, Federal judges and
Governors-General. These are discussed below.
Military superannuation schemes 35
The military superannuation schemes have been designed to meet the specific needs
of defence force staff. In particular, the defence schemes take into account the wide
variation in defence force staff retirement age, rank structure and make special
provision for staff who retire on invalidity grounds. 36
• The Defence Forces Retirement Benefits Scheme (DFRB), a defined benefit
scheme, which was established in 1948. The scheme was closed to new members
in 1973.
• The Defence Force Retirement and Death Benefits Scheme (DFRDB), a defined
benefit scheme, which replaced the DFRB Scheme. The scheme was closed to
new members in 1991.
• The Military Superannuation Benefits Scheme (MSBS), a hybrid accumulation /
defined benefit scheme, which was established in 1991. The scheme remains
open to new members.
Parliamentarians
Before 9 October 2004, it was compulsory for all Senators and Members who joined
the Parliament to become members of the Parliamentary Contributory Superannuation
Scheme (PCSS). The PCSS provides former members of the Federal Parliament with
retirement benefits in accordance with the provisions of the Parliamentary
Contributory Superannuation Act 1948 (the Act).
• The PCSS, a defined benefit scheme, which was established in 1948 and was
closed to new members from 9 October 2004.
35
Report of the Review into Military Superannuation Arrangements, Appendix E, provides further information on
these schemes.
36 April 2001, A ‘Reasonable and Secure’ Retirement? The benefit design of Commonwealth public sector and
defence force unfunded superannuation funds and schemes, Report of the Senate Select Committee on
Superannuation and Financial Services, pp 14-21.
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