Time to deliver on SSS salary sacrifice

By John Dixon

Federation is campaigning for State Superannuation Scheme members to be able to start making salary sacrifice contributions from July 1, 2007.

When Federation advised members of the policies of the various political parties before the state election Federation took the view that the Labor Party had superior superannuation policies to the Liberal-National Coalition. This view was based largely on the Government's record and the commitments made by various Ministers on the question of salary sacrifice arrangements for members of the State Authorities Superannuation Scheme (SASS) and the State Superannuation Scheme (SSS).

When then Education Minister Carmel Tebbutt addressed Federation's March Council in the run-up to the state election she said: "As part of the award negotiations in 2005 the Government also agreed in principle to amend legislation to allow teachers in the State Superannuation Scheme to salary sacrifice their compulsory contributions. The Minister for Industrial Relations, John Della Bosca, has announced that enabling legislation will be introduced in the Budget session immediately following the NSW state election if the Government is returned; and I have made sure that the Department of Education is taking steps to ensure salary sacrifice arrangements for SSS members are introduced as soon as practicable after the necessary legislation has been enacted."

The SAS Trustee Corporation (STC) and Pillar Administration have commenced preparations for the necessary systems changes. Federation understands that this process is well advanced and there is no impediment to the immediate implementation of the changes. The union also understands that, at least with respect to the Department of Education and Training, there has been a successful trial of an exchange of the necessary data between Pillar and the Department for salary sacrifice to occur for SSS members. The legislation now needs to be introduced into the next session of parliament with the earliest date of operation.

Superannuation is deferred salary and therefore a vital component for the consideration for members when deciding their financial arrangements now and in retirement.

Federation has campaigned for better superannuation outcomes for its members for more than a decade. The union's focus has been to lift the minimum employer contribution for those in the newer schemes to 15 per cent from the current nine per cent, and secondly to give members in the older schemes, particularly the SSS and SASS, access to salary sacrifice their employee contributions before tax, and extend access to salary sacrifice for temporary and casual teachers.

SASS members' access to salary sacrifice has been operative from April 1. Temporary and casual teachers in First State Superannuation or other authorised funds now have access to some levels of salary sacrifice.

John Dixon is the Assistant General Secretary (Communications and Administration).

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