Salary sacrifice for contributions to SSS approved

by Rod Brown

The NSW Cabinet has approved changes to allow for the salary sacrifice of compulsory employee contributions to the State Superannuation Scheme (the 'old' scheme).

Federation President Maree said: "The decision of the NSW Cabinet in this matter is very welcome."

"The NSW Government must now commit to the introduction of enabling legislation in the first parliamentary session immediately following the NSW election," she added.

It is only with the passing of legislation that State Super Scheme members may be in a position to salary sacrifice their compulsory superannuation contributions with effect from July 1, 2007.

Members of the State Authorities Superannuation Scheme (SASS), sometimes called the "middle" scheme, will be able to salary sacrifice their compulsory employee contributions from April 1.

Federation has had an agreement with the Department of Education and Training since October 2005 supporting the necessary changes that would enable members of both the State Superannuation Scheme and the State Authorities Superannuation Scheme to salary sacrifice their compulsory employee superannuation contributions.

The union has made representations to the NSW Government for a pre-election commitment to finalising the legislative process in the Budget session which will follow the NSW election.

Federation has also written to both the Government and the Opposition seeking improved superannuation arrangements for all members.

Rod Brown is a Welfare Officer.

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Last Modified: 08 Feb 2007