How soon after an office holder receives a pay rise should superannuation be adjusted?
Defined benefit schemes (e.g. PSS/CSS)
* For total remuneration (TR) and calculation of cash salary purposes:
The office holder’s new superannuation salary should be used to calculate the notional Employer Superannuation Contributions from the date of effect of the increase determined by the Tribunal.
* For contribution purposes:
Changes to any amount of superannuation that the office holder personally contributes to the PSS or CSS are made in accordance with the rules of the scheme, for instance, an office holder’s salary for contributions purposes is updated on the person’s birthday, falling on or after the date of effect.
For PSSAP members the value of the Employer Superannuation Contribution should be updated from the date of effect of the Tribunal's increase; actual employer contributions will also be updated at that time. The minimum “guarantee” payments for members of other accumulation funds should be updated when TR is adjusted, or each 1 July if the maximum contribution base applies. Actual contributions can be modified at any time to reflect salary packaging preferences of the office holder, but the minimum contribution required by the Superannuation Guarantee (Administration) Act 1992 must be paid, and, for Principal Executive Offices (PEOs), reported to the Tribunal on PEO notifications.