New legislation – Superannuation Legislation (Commonwealth Employment Repeal and Amendment) Act 2003

The Federal Government has recently approved changes designed to streamline and standardise administration of the CSS including measures such as:

Removing certain restrictions relating to reversionary pension benefits

Previously, if a CSS pensioner over age 60 entered into a marital relationship, the relationship would have had to exist for a continuous period of five years before there could be an entitlement to a reversionary pension on the death of the pensioner.

The new legislation reduces the requirement to three years and introduces a pro-rata reversionary pension where a marital relationship has existed for less than three years at the time of the pensioner’s death.

Introducing option for members to provide a higher payment to an eligible spouse on death of the member

Generally, the new legislation allows for a member to elect to reduce their pension payment to 93 per cent of the normal value in return for a higher payment to an eligible spouse on the death of the member.

This option is only available to members who become entitled to their pension after 1 July 2003. This option is not available to existing pensioners, invalidity retirees, or on the death of a contributing member.

Allowing performance-based pay to be transferred in (CSS)

Generally, the new changes allow for CSS members to consolidate superannuation amounts from other funds even if the superannuation amount was related to your current employment, e.g. part of a performance bonus.

Taking away the cap on supplementary contributions

Previously in the CSS, the contributions you had to pay as a member were a minimum of 5 per cent and a maximum of 10 per cent. The new legislation maintains the requirement to contribute at a minimum of 5 per cent, but takes away the upper limit. Now you can pay supplementary contributions of any amount above 5 per cent provided that it is paid on a payday.

Supplementary contributions cannot be salary sacrificed into the CSS.

Simplifying Leave Without Pay (LWOP) arrangements

While there are a few exceptions, generally speaking if an employer is prepared to continue to make contributions then you will be able to contribute and full employer benefits will accrue.

The modification of systems and information services required to implement these new measures is currently being finalised. We will keep all members updated via this website and directly contact any members whose existing arrangements may be affected by this transition phase.

If you do have an enquiries, please call a CSS Information Officer on 1300 000 277