New superannuation arrangements for Australian Government employees : update

On Wednesday 24 March 2004, the PSS 20th Amending Trust Deed and Rules, establishing new superannuation arrangements for employees who become members of the PSS from 1 July 2005, was gazetted and tabled in parliament by the MInister for Finance and Administration. The Minister has issued a press release on the new arrangements.

These changes to the superannuation arrangements for Australian Government employees were announced in October 2003. These arrangements will only apply to new employees who commence employment from 1 July 2005 and join the Public Sector Superannuation Scheme (the PSS).

Arrangements for existing employees will be unaffected.

Also unaffected will be people with an existing interest in the CSS or the PSS at 30 June 2005. This includes people with a deferred interest or preserved benefit.

Under the new arrangements the PSS will provide fully funded accumulation benefits for new employees with employers contributing at a rate of 15.4% of salary. This is the average cost for the current PSS arrangements.

Further information about the new arrangements can be found under WHAT'S NEW IN SUPER at www.finance.gov.au/super

Further details about the changes will be announced at a later date.