Human Resources

Superannuation

All employees

General

The information provided here is general information only to assist principals, managers and employees in understanding their obligations and responsibilities relating to superannuation. 

All employees are required to be a member of a superannuation fund to which the Department or school council, as employer, must make contributions.  The information provided here applies to Department employees who are paid on the Department’s central payroll system.  Sources of information for school councils on superannuation matters for those employed on the CASES21 school level payroll are included under ‘Other Resources’ below.

Comprehensive superannuation information, particularly concerning an individual’s situation, should be obtained from the fund of which the employee is a member.

The superannuation arrangements for an employee will generally be determined by the commencement date of their current period of employment as follows:

  • A person whose employment commenced prior to 1 January 1994 is likely be a member of a defined benefits scheme, such as the Revised, New or State Employment Retirement Benefits (SERB) Scheme.  These superannuation schemes are administered by Emergency Services and State Super (ESSS).
  • An employee whose current employment commenced on or after 1 January 1994 has the opportunity to nominate a complying fund of their choice for superannuation purposes.

The Department is required to offer employees the opportunity to choose a complying superannuation fund to which they wish to direct their employer’s superannuation contributions (see below for more information).  Employees are advised to obtain appropriate financial advice in considering their options in relation to choosing a fund.

Where an employee does not take the opportunity to choose a superannuation fund to receive the compulsory employer contributions, the Department will direct those contributions to VicSuper Pty Ltd (see below for more information).

Information for current employees

Brief details are provided below relating to general leave and salary matters for employees who are in schemes administered by ESSS/VicSuper.  Comprehensive and specific information on these schemes should be obtained from ESSS/VicSuper.  All enquiries concerning employee contribution amounts should be directed to ESSS/VicSuper.

Members of other funds should contact their fund manager to ascertain details on their specific requirements, such as making contributions whilst on leave without pay or what information is required when employment ceases.

Superable Salary for those in ESSS schemes

Executive Officers and employees in the Executive Class and Principal Class have their salary for superannuation purposes specified in their contract of employment. The Department provides ESSS with this information to enable the calculation of the member's contribution rate.

The superannuation salary for other employees is determined in accordance with the relevant superannuation legislative provisions based upon the ordinary salary they receive and certain allowances.

The current superable allowances paid to Department employees are:

  • Higher duties (after it has been paid for at least twelve months)
  • Salary maintenance (superable)
  • Special school allowance (teachers)
  • Intensive Care Allowance (education support class)
  • Special payment (after it has been paid for at least twelve months)
  • Gratuity superable

Salary Sacrificing of Employee Contributions

Employees have the opportunity to salary sacrifice their contributions to their superannuation fund.  For full terms and conditions regarding these arrangements, employees should contact the fund of which they are a member.

Employee Contributions whilst on Leave without Pay

An employee who is a member of a scheme administered by ESSS who takes leave without pay for any purpose for a period of less than four weeks will be required to make up any superannuation contributions that are due during this period. Upon returning to paid employment, the amount owing will be deducted in addition to the employee's normal contribution.

Prior to an employee taking leave without pay for any purposes for a period greater than four weeks, he/she should contact ESSS to discuss the impact of the leave without pay and the options available to them while on leave without pay.

Members of VicSuper should contact the fund prior to taking leave without pay to determine what action, if any, should be taken with regard to their contributions.

Cessation of Employment

ESSS/VicSuper is automatically notified electronically after an employee's cessation details are processed on the payroll.  It is the responsibility of the employee to contact ESSS/VicSuper to make suitable arrangements concerning his/her superannuation entitlements when their employment has ceased.

Employees with Previous Membership of an ESSS Scheme

Where a new employee of the Department was a member of a scheme administered by ESSS immediately prior to joining the Department and did not have a break in service, the new employee will retain his or her membership of that scheme.  Where a person is re-employed with a break in service of one day or longer, his or her membership of the scheme will be terminated.  ESSS makes decisions on fund membership in these circumstances.

Information for new employees, including Choice of Fund

Providing the Standard choice form

The Department is required to offer employees the opportunity to choose the superannuation fund to which they wish to direct the employer superannuation contributions. 

The Department is required to provide the Standard choice form to an employee who meets any of the following criteria:

  • within 28 days of the employee first commencing employment;
  • within 28 days of an employee requesting, in writing, a Standard choice form;
  • within 28 days of the Department becoming aware that they are no longer able to contribute to the employee’s chosen fund or the chosen fund is no longer an eligible choice fund; or
  • within 28 days, where the Department is contributing to the default fund on the employee’s behalf and the default fund changes.

When hiring/rehiring a school-based employee, the school will need to ensure that as part of their employment procedures, the Standard choice form is provided to the person.  HR Services is responsible for ensuring this occurs as part of the recruitment process where an external applicant is appointed to the principal class or executive class.  Corporate HR Services will ensure this occurs as part of the recruitment process for VPS staff and executive officers.

The form to be provided, which already has the Department’s employer details included, is available under ‘Procedures and Forms’ under 'Other Resources' below.

Payroll Processing

As part of the hire/rehire processing on HRMS, an item on the Employee Checklist needs to be completed.  After an employee has been given the form, HRMS must be updated as follows:

  • locate the “Choice of Super Fund form” field in the Employee Checklist and choose 'satisfactory' from the drop down box; and
  • record the date the employee was handed the Standard choice form.

Where the person does not choose another superannuation fund, he/she must be enrolled in VicSuper as this is the default fund for employer superannuation contribution purposes.  

Choosing another fund

Where the employee wishes to choose another fund, they need to complete the form and return it to the school, Schools HR Services or Corporate HR Services as appropriate.  The form includes instructions, some general information about ‘choice of fund’ and sets out the required documentation which is to be attached to the completed Standard choice form.  These additional documents must be provided by the employee together with the Standard choice form to enable processing of their choice. 

Upon receipt of a completed form from a school-based employee, the school must ensure the employee has attached all the necessary documentation before taking any further action.  A two-month statutory limit on actioning an employee’s request applies, so the form, accompanied by all the required documentation, must be date-stamped on receipt.  The two-month time limit does not commence until all the relevant documentation has been received from the employee.  The Department has the right to refuse to accept a fund chosen by an employee if the employee has already chosen a fund in the previous twelve months.

The Standard choice form is processed centrally.  Completed forms, together with the required documentation, are to be sent to:

The Superannuation Officer

Department of Education and Early Childhood Development

GPO Box 4367

Melbourne 3001

Other Resources

Policy & Guidelines

Procedures & Forms

Superannuation funds

State Services Authority

The State Services Authority (SSA) manages executive remuneration and employment policy for the Victorian Public Service (VPS).  Information about executive remuneration and conditions, including superannuation, is available at: SSA-Executive remuneration information

Australian Taxation Office

The website of the Australian Taxation Office provides detailed information to assist employees in relation to their superannuation, in particular choosing a fund, and to help employers meet their superannuation obligations.  The following may be of assistance:

For employees

For school councils, as employers

Related Topics

 

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