CEO provides clarification on benefit payments for CSS members employed by approved authorities

I am posting this notice to advise members that a benefit payment arrangement, previously made available to a number of CSS members employed by approved authorities, is in breach of superannuation law and therefore will no longer be available.

This is contrary to the advice that some members may have received previously.

We have personally contacted all members, of whom we are aware, that might be about to claim a benefit based on the arrangement that we now know is incorrect.

The relevant payment arrangement was one that was made available to CSS members employed by approved authorities that offer the choice of an alternative super (superannuation) fund, such as:

CSS members in this situation are able to change super funds, thereby stopping their CSS contributory membership and deferring (or preserving) their CSS benefit.

In the past, some members have then claimed their deferred benefit at the minimum retirement age (generally 55) although they continued to work for the same employer who contributed to their CSS super.

On discovering this arrangement, the CSS Board immediately sought independent legal advice. This advice confirmed that a CSS retirement benefit cannot be paid if a member remains in continuous employment with the same employer who contributed to their CSS super . As a result, the CSS Board is unable, by law, to make any future benefit payments of this type.

A CSS retirement benefit can only be paid if a CSS member reaches retirement age and meets conditions of release such as:

An error with members' benefit payments is unacceptable, and we deeply regret that it has been made. Any affected members are welcome to meet with me and Leo Bator (the Commissioner for Superannuation) to discuss the matter further - you can send me an email direct using the button below. You may also choose to seek independent professional advice.

This issue is very complex and, as a matter of priority, the CSS Board and its administrator ComSuper have established processes to ensure a situation such as this does not happen again.

Already, we have updated all relevant information on our website and have contacted those members we know have been affected. I will keep members informed of any further results.

Steve Gibbs
CSS Chief Executive Officer

I wish to enquire if this situation relates to me