Read Corporate administration ­ governance ­ policy, guideline ORPORATE ADMINISTRATION ­ GOVERNANCE ­ POLICY, GUIDELINE AND INFORMA text version

Policy Directive

Department of Health, NSW 73 Miller Street North Sydney NSW 2060 Locked Mail Bag 961 North Sydney NSW 2059 Telephone (02) 9391 9000 Fax (02) 9391 9101 http://www.health.nsw.gov.au/policies/

space space

Superannuation Payments for Employees Aged 65 and Over

space Document Number PD2008_035 Publication date 25-Jun-2008 Functional Sub group Personnel/Workforce - Salaries Summary Superannuation contributions or equivalent superannuation salary loadings for employees and former employees aged 65 and over. Author Branch Employee Relations Branch contact Employee Relations 9391 9357 Applies to Area Health Services/Chief Executive Governed Statutory Health Corporation, Board Governed Statutory Health Corporations, Affiliated Health Organisations - Non Declared, Affiliated Health Organisations Declared, Public Health System Support Division, Community Health Centres, Dental Schools and Clinics, NSW Ambulance Service, Public Health Units, Public Hospitals Audience All employees of NSW public health system Distributed to Public Health System, NSW Ambulance Service, NSW Department of Health Review date 25-Jun-2013 File No. 05/4133 Status Active

Director-General space This Policy Directive may be varied, withdrawn or replaced at any time. Compliance with this directive is mandatory for NSW Health and is a condition of subsidy for public health organisations.

Policy Directive

SUPERANNUATION PAYMENTS FOR EMPLOYEES AGED 65 AND OVER The Commonwealth superannuation law previously held that superannuation contributions could only be accepted by superannuation funds for persons up to the age of 70. Prior to July 1997, contributions could only generally be accepted up to age 65. In 1999, the NSW Government, acting on its commitment to encourage the employment of mature-aged employees, sought advice from the Crown Solicitor and Anti-Discrimination Board as to the Commonwealth superannuation position. The advice received suggested that employers in NSW may be committing an unlawful act of age discrimination if they do not pay superannuation contributions or provide equivalent remuneration for employees above the Commonwealth age limit. Accordingly, Premier's Department in its Circular C1999-49 implemented a number of measures to compensate for superannuation contributions that had not been made for current and former employees aged 70 and over. The Department of Health made a determination to the effect that the terms of Premier's Department Circular C1999-49 be applied to employees of the NSW Health Service. This determination was issued under cover of former Health Circular 99/106 titled `Payments in Lieu of Employer Superannuation Support for Certain Employees Aged 65 and Over' ­ refer determination at Appendix A. In a subsequent Circular C2007-33, Premier's Department advised of a change in Commonwealth superannuation regulations which allowed superannuation funds to accept employer contributions on behalf of eligible employees between the ages of 70 and 75 who satisfy a work test. The effect of this circular is to replace the provisions of Circular C1999-49 from 1 July 2007 for those particular employees in the 70 to 75 age category who satisfy the work test ie. who are gainfully employed for at least 40 hours in a consecutive period of not more than 30 days within a financial year. These employees are to be treated in the same way as employees who are eligible for membership of First State Super. However, for those employees who are between 70 and 75 who do not satisfy the work test, or who are over the age of 75, the provisions of Circular C1999-49 continue to apply, and a superannuation salary loading should be paid to them instead. A determination consolidating the provisions of both Premier's Department circulars is enclosed as Appendix B so as to reflect the Department of Health's overall policy on superannuation payments for employees aged 65 and over.

Professor Deborah Picone AM Director-General

page 1 of 6

APPENDIX A

PAYMENTS IN LIEU OF EMPLOYER SUPERANNUATION SUPPORT FOR CERTAIN EMPLOYEES AND FORMER EMPLOYEES AGED 65 YEARS AND OVER

1.

INTRODUCTION Pursuant to section14 of the Health Administration Act 1982, section115 of the Health Services Act 1997 and section 15 of the Ambulance Services Act 1990, the Health Administration Corporation has determined that payments in lieu of employer superannuation support be provided to certain employees and former employees described in Section 3 below.

2.

DEFINITIONS "Employee" means person currently employed under the Health Services Act 1997, the Ambulance Services Act 1990 or the Health Administration Act 1982. "Former employee" means a person formerly employed under the Public Hospitals Act 1929, Area Health Services Act 1986, Health Services Act 1997, Ambulance Services Act 1990 or the Health Administration Act 1982. "Compulsory employer contribution percentage rate in the First State Superannuation Scheme" means the employer contribution rate prescribed in Section 12 of the First State Superannuation Act 1992. "Total salary" means earning in respect of ordinary hours of work, and consisting of any over-award payment, shift loading or commission.

3.

PAYMENT IN LIEU OF EMPLOYERS SUPERANNUATION SUPPORT The following payments are to be paid to employees and former employees covered by this Determination: · A superannuation loading, calculated by multiplying the employee's total salary each pay period by the compulsory employer contribution percentage rate in the First State Superannuation Scheme (FSSS) for that particular year, is to be paid to employees aged 70 years and over; and Lump sums equal to the total amount of the FSSS contributions employers would have paid in respect of employees and former employees prescribed below had there been no age restrictions on contributions in the First State Superannuation Act 1992, plus compound interest on the FSSS amounts using the annual crediting rate for the capital guarded option in the FSSS:

·

Policy Directive

Title: Superannuation Payments for Employees Aged 65 and Over

APPENDIX B SUPERANNUATION PAYMENTS FOR EMPLOYEES AGED 65 AND OVER Pursuant to Section 116A (1) of the Health Services Act 1997, and Delegation 15.2 of the Department of Health's Combined Administrative Financial Staff Delegations Manual, I, Karen Crawshaw, Deputy Director-General, Health System Support, of the NSW Department of Health, do hereby determine: 1. That the terms of Premier's Department Circular C1999/49 entitled `Payments in Lieu of Employer Superannuation Support for Employees and Former Employees Aged 65 Years and Over' which formed the basis of a Health Administration Corporation determination to apply the same terms to employees in the NSW Health Service and to the Ambulance Service of NSW, and which appeared as an attachment to Department of Health Circular 99/106 and which is attached to this determination as Appendix `A', be re-affirmed as part of the Department's policy on superannuation payments for employees aged 65 and over. That the terms of Premier's Department Circular C2007-33 entitled `New Superannuation Arrangements for Eligible Employees between the ages of 70 and 75' be applied to eligible employees in NSW Health as follows: (a) From 1 July 2007 Commonwealth superannuation regulations allow superannuation funds to accept employer contributions made on behalf of eligible employees between the ages of 70 and 75. Previously superannuation funds were prevented from accepting employer contributions if the employee was 70 years of age and over unless the contributions were required under an award. The following arrangements appearing in paragraphs (c) to (e) apply to eligible employees instead of the superannuation salary loading detailed in Appendix `A' (Circular C1999-49). The change in Commonwealth regulations applies to employees between the ages of 70 and 75 if they satisfy the work test. This test requires employees to have been gainfully employed for at least 40 hours in a period of not more than 30 consecutive days during the financial year during which the contributions are to be made. From 1 July 2007 these employees should be treated in the same way as employees eligible for membership of First State Super. Employer contributions should be made on their behalf to First State Super or another complying superannuation fund of the employee's choice.

2.

(b)

(c)

(d)

page 5 of 6

Policy Directive

Title: Superannuation Payments for Employees Aged 65 and Over

(e)

Commonwealth regulations allow superannuation funds to accept superannuation contributions if they are received by the fund no later than 28 days after the month in which the employee turns 75. From 1 July 2007, superannuation funds cannot accept employer contributions made on behalf of the following categories of employees unless they are required under an award:Employees between the ages of 70 and 75 who do not satisfy the work test, and Employees over the age of 75.

(f)

In those cases, Circular C1999-49 continues to apply to those employees. Health Services should therefore pay a superannuation salary loading to those employees in accordance with Annexure `A' of this determination. 3. That the provisions of this determination do not apply to employees in receipt of a Total Remuneration Package (TRP) which includes a component for the employer's contribution to superannuation.

Karen Crawshaw Deputy Director-General, Health System Support NSW Department of Health

page 6 of 6

Information

Corporate administration ­ governance ­ policy, guideline ORPORATE ADMINISTRATION ­ GOVERNANCE ­ POLICY, GUIDELINE AND INFORMA

7 pages

Report File (DMCA)

Our content is added by our users. We aim to remove reported files within 1 working day. Please use this link to notify us:

Report this file as copyright or inappropriate

313746


You might also be interested in

BETA
SW14 2008
Corporate administration governance policy, guideline ORPORATE ADMINISTRATION GOVERNANCE POLICY, GUIDELINE AND INFORMA
FR_JULY2010_
BM2010020693