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New – Superannuation Legislation (Commonwealth Employment Repeal and Amendment) Act 2003 and 18th Amending Trust Deed to the PSS Rules
The Federal Government has recently approved changes designed to streamline and standardise administration of the PSS including measures such as:
Removing certain restrictions relating to reversionary pension benefits
Previously, if a PSS pensioner over age 60 entered into a marital relationship, the relationship would have had to exist for a continuous period of five years before there could be an entitlement to a reversionary pension on the death of the pensioner.
The new legislation reduces the requirement to three years and introduces a pro-rata reversionary pension where a marital relationship has existed for less than three years at the time of the pensioner’s death.
Introducing option for members to provide a higher payment to an eligible spouse on death of the member
Generally, the new Rules allow for a member to elect to reduce their pension payment to 93 per cent of the normal value in return for a higher payment to an eligible spouse on the death of the member.
This option is only available to members who commence become entitled to their pension after 1 July 2003. This option is not available to existing pensioners, invalidity retirees, or on the death of a contributing member.
Simplifying Leave Without Pay (LWOP) arrangements
While there are a few exceptions, generally speaking if an employer is prepared to continue to make contributions then you will be able to contribute and full employer benefits will accrue.
The modification of systems and information services required to implement
these new measures is currently being finalised. We will keep all members
updated via this website and directly contact any members whose existing
arrangements may be affected by this transition phase.
If you do have any enquiries, please call a PSS Information Officer
on 1300 000 377