FAQs

Here are some of the most frequently asked questions by employers. To get the answer click on the questions.

What are Additional death and invalidity cover (ADIC) birthday reviews and how do they affect us?

The premiums for additional death and invalidity cover are adjusted annually (as the same time anniversary adjustments are made to the member's normal superannuation contributions).

Increases in average salary plus increases in the member's age will mean that, unless the member specifically elects, on the Form SE6, to decrease his or her cover or is required to do so because of reaching the maximum benefit cover, the employee and employer premium payable may need to be adjusted by the employer each year on the person's birthday.

For this reason it is vital employers submit accurate member data so that adjustments to ADIC can occur without manual intervention.

How do I order scheme publications online?

All scheme publications are available in PDF format on the scheme websites under forms and publications. Download and print the publication or order a copy to be sent to you. Go to forms and publications then online ordering and fill in the form. Its best not to order too many copies of the publications as they are updated regularly to reflect legislative changes.

My employee is a CSS member changing their employment type – what super choice do they have?

CSS members changing from full-time to temporary part-time or casual must be offered the choice to join another fund. If they are casual they can choose or default to join the PSSap. There are cases where members are eligible to default to the PSS (check the eligibility determiner) but they cannot choose to join the PSS.

What is the process to cease a PSS member?

  1. The PSS election to cease membership form (ref no EC-PSS, available at www.pss.gov.au) needs to be filled out and faxed to 02 6272 9996.
  2. The date of ceasing membership cannot be back dated. The cessation date is the date you have sighted the PSS election to cease membership form. The PSSap membership will start the next day.
  3. You will also need to email employer.help@comsuper.gov.au providing the personal details of the member such as payroll number, PSSap commencement date, starting salary and employment status.
  4. Finally, we will email you with the PSSap membership details

Is there a new reporting requirement to report Ordinary Time Earnings (OTE) for PSS and CSS members?

Yes, from 1 July 2008 employers are required to provide OTE amounts for all CSS and PSS members.

Does this mean we no longer have a requirement to perform birthday reviews for these members on their anniversaries?

No, the legislation for both schemes has not changed. You are still required to apply scheme rules to birthday reviews.

Do we have to produce a quarterly shortfall report for our PSS and CSS members?

No, we are collecting OTE amounts for the calculation of potential shortfalls for PSS and CSS members. We will determine payment shortfalls when a member claims a super entitlement.

Is the quarterly shortfall still required for PSSap members?

Yes - this reporting requirement has not changed.

I have heard that from 1 July 2008 everybody is on OTE for super purposes. Does this mean that PSSap members no longer have to be reported on fortnightly contribution salary (FCS)?

No, if your agency has not specified in a certified agreement or individual agreement that a PSSap member’s salary for super is based on OTE then the employer is required to pay contributions based on the FCS rules.

Is 0% the new default contribution rate for the PSS and CSS?

No, the default contribution rate remains at 5%. If an employee wishes to contribute at 0% they must elect this option. To change their rate of contribution an employee
must complete a Change my super contribution rate form at www.pss.gov.au

Is Ordinary Time Earnings (OTE) the way that we provide our salaries for superannuation when we do birthday reviews?

No. For employees that are PSS and CSS members you still need to base birthday reviews on fortnightly contribution salary (FCS).

For employees that are PSSap members and are not on OTE (as stipulated in a certified agreement or individual agreement) they default to FCS and you are still required to calculate birthday reviews.

OTE is required for reporting purposes only to ensure at least 9% of a member’s OTE has been met.

I have an employee who has a PSS preserved benefit and does not wish to re-join the PSS, can I immediately put them in the PSSap?

No. The member must recommence membership with the PSS before they can cease their membership. Once membership of the PSS has recommenced they can then elect to leave the PSS and join another superannuation fund. In most cases this will be the PSSap (if the employer is a participant of the PSSap).

If I have an employee who has elected to cease their membership in one pay period and then commences membership in the PSSap in the same period, which scheme do I pay the contributions to?

The contributions will be paid to the scheme the employee is in on the actual payday. In this scenario, 15.4% is payable to the PSSap.

If I have an employee who is currently in the PSS who pays additional death and invalidity cover (ADIC) and they cease their membership and join the PSSap, does this cover roll over to the PSSap?

No, once a member ceases the PSS, the ADIC cover is also ceased.

Is there any difference between the insurance for a member that has moved from the PSS to the PSSap, and a new employee who has just joined the PSSap?

The employee who ceases PSS membership and joins the PSS has limited insurance cover for the first 12 months of PSSap membership. There is more detail about this for the member in the PSSap product disclosure statement.

We have a member of the CSS who wants to pay a 0% contribution rate. Will this affect their years of contributory service in the CSS?

No it won’t. A member who elects to pay 0% in the CSS will still accrue contributory service for superannuation purposes.

Can PSS/CSS members salary sacrifice contributions into the scheme?

No, they are not able to salary sacrifice payments into the PSS or CSS. The PSS and CSS can only accept member contributions based on salary for super and deducted from post tax salary.

All contributions received are treated as being from a taxed source i.e. that the member has already paid tax on the money. Therefore, no further tax is deducted from this money on receipt or subsequent benefit payment. Any pension entitlements subsequently purchased with these contributions are considered to attract the concessional tax treatment that applies to pension purchased with taxed contributions.

Can a PSSap member salary sacrifice to the PSSap?

Yes, PSSap members can salary sacrifice into the PSSap with their employer’s agreement. These amounts are treated as employer contributions and should be entered into the ‘salary sacrifice’ contribution field in your payroll system or contribution grid in ESO.

Any salary sacrifice payments do not alter the employer’s obligation to make basic employer contributions of 15.4% of the member’s super salary.

Our employee is ceasing membership of the CSS and is not working on the payday. Is the employer required to make a contribution for the days worked in the pay period?

No, the employer is not required to make a contribution if the member does not work on the payday. This rule also applies in the PSS and the PSSap. However in the PSSap the employer may still be required to pay a shortfall if they have not met the shortfall requirements for the quarter. This is covered in the PSSap training notes.

When I look at the departmental report it tells me to fill in the last three variations. What does this mean?

The last three variations are the last three times that the member’s money has changed. There is a Quick guide on the Employer webpage that provides you with examples that will assist you with filling in a departmental report.

What documents other than the benefit form CD-A3-CSS does an employer need to supply for a member who is ceasing CSS membership under transition to retirement?

An employer needs to provide a letter with the Benefit application stating the reason why the member is ceasing membership of the CSS i.e. the member is ceasing due to changing from full-time to temporary part-time employment or they are opting out to become a member of the employer sponsored fund which pays greater than 9% SG.

What other documents does an employer need to supply for a member who is ceasing employment due to invalidity or retrenchment?

The employer will need to provide a Retirement Instrument that is signed by their delegate, stating that the member has been retired under the relevant section of the Public Service Act and the date of retirement.