Budget 2007 Super News
New Government proposals were announced in the 2007 Budget which will affect members of the PSS. Full details in relation to these proposals are not yet available, however, once the necessary legislative and/or rule amendments are finalised this information will be made widely available to PSS members.
The proposals are as follows:
Maximum Benefit Limits (MBLs)
It is proposed that the MBL limits in the PSS will be increased prospectively for contributing members to a "10 times Final Average Salary (FAS) Framework". At present most members are subject to an MBL of 8 times FAS.
It is proposed that this measure will take effect from 1 January 2008.
Removing the Requirement for Mandatory Member Contributions
It is proposed to allow PSS members to make an election to contribute at 0%. If a member makes such an election their employer benefit in the PSS will accrue at a reduced rate during any period on zero contribution and consequently this will affect any future benefits that might be payable.
It is proposed that this measure will take effect from 1 July 2008.
Access to Choice of Fund
This proposal will enable PSS contributing members to access Choice of Fund. PSS members exercising this option will move to the PSS Accumulation Plan (PSSap) and will then be able to exercise their right to full Choice of Fund.
Please note that where a member’s employer does not participate in the PSSap but agrees that the member can join an alternative scheme, employer contributions will be paid to that alternative scheme s agreed between the member and their employer.
Under this proposal a PSS member who elects for choice of fund will retain a preserved benefit in the PSS, but will not be able to return to contributory membership of the PSS. Access to the preserved benefit will be in accordance with the normal benefit release criteria.
It is proposed that this measure will take effect from 1 July 2008.
Early Access to Benefits for Contributing Members
This proposal will allow contributing members to access part of their PSS benefit on hardship and/or compassionate grounds. If a member meets the criteria for early release in line with the eligibility rules provided under the superannuation regulatory framework, a debt account will be created and will be taken into account when the member’s final benefit is payable.
It is proposed that this measure will take effect from 1 January 2008.
For further information you can access the Department of Finance website.
Also if you wish to view the press release from the Minister for Finance click here.
