1 general conditions of employment - Department of Education and ...

9 SUPERANNUATION9.2 FIRST STATE SUPER (FSS)9.2.1 INTRODUCTIONFirst State Super (FSS) is the Government superannuation scheme set up to accept and managethe compulsory superannuation contributions that public sector employers are required to makefor their employees in terms of the Commonwealth superannuation guarantee legislation. FSSwas established by the First State Superannuation Act 1992 and is administered by Pillar onbehalf of the scheme’s Trustee.9.2.2 MEMBERSHIP OF FSSAfter the State Authorities Superannuation Scheme (SASS) closed on 18 December 1992, newemployees automatically became members of FSS if they were aged under 65 years and were notmembers of one of the previous schemes (an exception would be staff who are members of SSSor SASS and are also employed as a casual).Contributions cease at age 70. This age will be 75 from 1 July 2007. The employer obligation topay 9% of an employee’s superable salary by way of superannuation guarantee contribution,direct to the employee’s fund of choice, ceases once an employee turns 70 years of age.Thereafter the 9% is paid as a taxable allowance and is included in the gross weekly incomepayments. This allowance may be ‘salary sacrificed’ for superannuation if the employee sochooses until the employee turns 75 years of age.Members of the closed schemes can choose to make personal ("top up") contributions to FSS.9.2.3 CONTRIBUTIONS TO FSS9.2.3.1 Employer ContributionsThe employer’s contribution is based on the total earnings for ordinary hours of work plusany earnings from shift loading. Overtime and lump sum payments on termination ofemployment are not included (for more information refer to the Taxation Office ruling,Superannuation Guarantee Ruling: Ordinary Time Earnings).The contribution required to be made to FSS is 9% of ordinary time earnings from 1 July2002.FSS is unable to accept contributions for an employee who has reached age 70.9.2.3.2 Personal ContributionsFSS members can add to their existing scheme entitlements by making personalcontributions from their after-tax pay to FSS. FSS also accepts Eligible TerminationPayments rolled over from another superannuation or rollover fund.Personal contributions (there is no minimum contribution) can be made by regulardeductions from after-tax pay or by single payments made at any time (the member canmake this payment directly to FSS). To authorise deductions from pay, it is necessary tofill in a Payroll Deduction Authority form (contained in the FSS member informationbooklet).Certain limits on personal contributions may apply after a member reaches age 65. FSSHandbook for non teaching staff in schools Page 9 − 2