Superannuation

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 the employer, must make contributions.  The information provided here applies to Department employees who are paid on the Department’s central payroll system and school council employees who are paid on the School Local Payroll module on eduPay.

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 to be a member of a defined benefits scheme, such as the Revised, New or State Employment Retirement Benefits (SERB) Schemes.  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 accumulation fund of their choice for Superannuation Guarantee Contributions (SGC).

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

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

Information in relation to 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 allowances as determined by ESSS, which currently include:

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

Salary Sacrificing of Employee Contributions

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

Teaching Service employees are required to salary package through the Department's salary packaging provider - Smartsalary Pty Ltd.(see related topics below).

Public Service employees should contact the relevant HR Consultant in Corporate People Services (see Contact Information below).

Employee Contributions whilst on Leave without Pay

An employee who is a member of a scheme administered by ESSS who takes leave without pay (LWOP) for any purpose should contact their fund for advice.

Members of VicSuper or other accumulation funds 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 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 to make suitable arrangements concerning their superannuation entitlements when 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 in relation to new employees, including Choice of Fund

The Department or School Council, as the employer, is required to offer employees the opportunity to choose the superannuation fund to which they wish to direct the employer superannuation guarantee contributions (SGC).

The Department or School Council, as the employer, is therefore 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, including those on the School Local Payroll on eduPay, the school operator will need to ensure that as part of their employment procedures, the employee is directed to login to eduPay ESS and record their choice of superannuation details. 

Schools' People 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 People Services will ensure this occurs as part of the recruitment process for VPS, Allied Health and executive officers.

Where an employee is unable to access Employee Self Service and record their superannuation details the following applies: 

  • For Department employees a Choice of Superannuation fund form is available below.  (The form has been amended to include the Department's employer details and default fund information and is available under 'Procedures and Forms' under 'Other Resources' below.)
  • For school council employees on SLP on eduPay use the link to the ATO form and include the School Council details as the employer.

Payroll Processing

Employee Self Service on eduPay allows a new, rehired or current employee to enter their Superannuation Guarantee choice of fund form directly onto eduPay.  Complete the update via Employee Self Service > My Pay Details > Superannuation Details

The electronic entry of the choice of superannuation details by the employee via ESS is the equivalent of providing a signed, paper copy.

Changes made through ESS will be effective for:

  • new employees from their hire date
  • rehired employees from their rehire date except where a current open deduction exists, in which case from the next pay period
  • current employees, from the next pay period

Only where an employee is unable to access Employee Self Service and record their superannuation details, the fully completed and signed Choice of Superannuation fund form is to be sent as follows:

Refer to the Superannuation Administration procedures below for further information and payroll actions to be completed.

Other Resources

Policy & Guidelines

      Procedures & Forms

      • Superannuation Administration Procedures (WORD)

      Employees are to add or update their superannuation requirements via Employee Self Service (ESS).  The following choice form is only required where access to ESS is not available.  (see ESS Help)

      Superannuation funds

      Victorian Public Sector Commission

      The Victorian Public Sector Commission (VPSC) manages executive remuneration and employment policy for the Victorian Public Service.  Information about executive remuneration and conditions, including superannuation, is available on the VPSC website

      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

       

      Contact Information