Agencies are required to meet the superannuation expense of their employees. PSS and CSS agencies will generally make two superannuation payments. These are employer productivity contributions which are paid to the PSS and CSS Funds and employer contributions which are paid to the Official Public Account. Payments are forwarded through CSC.
The rate of productivity contributions are determined each financial year. Current and previous productivity rates are available on the PSS/CSS Employer Administration Centre web site.
Finance advises agencies of their agency specific contribution rates. These rates are determined on the basis of actuarial advice. The contribution framework also provides for additional lump sum contributions to be paid by agencies where significant salary increases for individuals impact on the superannuation liability. The parameters used by the actuary to calculate the amount are:
- The superannuation salary increase of the members is greater than 20%; and
- The member is age 55 or over at the start of the financial year (CSS members only); and
- The member’s liability to salary ratio exceeds the agency’s CSS or PSS liability to salary ratio.
Employer contributions are monitored to ensure that payments are in line with the actuarially calculated rates. If there are variations from the calculated rates, the relevant agency will be informed of the variation and options for addressing the variation can be discussed.