Overview
- The Parliamentary Contributory Superannuation Scheme (PCSS) closed to new members from 9 October 2004 and superannuation accumulation arrangements were established for parliamentarians joining Parliament on or after that date.
- The accumulation arrangements were established under the Parliamentary Superannuation Act 2004 (the 2004 Act) and involve a Commonwealth contribution of 15.4% which is calculated on total parliamentary salaries. The Commonwealth contribution is payable into a superannuation fund nominated by the parliamentarian.
- The 2004 Act arrangements apply only to parliamentarians who joined the Parliament and were not sitting parliamentarians as of 31 August 2004. The arrangements also apply to parliamentarians returning to the Parliament after a break in service.
- Existing members of the PCSS cannot transfer to the 2004 Act arrangements.
Choice of fund
- Parliamentarians covered by the 2004 Act arrangements may choose a complying superannuation fund or a Retirement Savings Account to receive their Commonwealth contribution. As of 14 April 2015, the nominated fund can be a self‑managed superannuation fund.
- The Minister for Finance has declared AustralianSuper to be the default superannuation fund to receive the contributions in the event the parliamentarian does not make a choice.
- Previously, the Australian Government Employees Superannuation Trust (AGEST) was the default superannuation fund. It became necessary that AustralianSuper take their place as the new default superannuation fund as both entities merged, effective from 1 January 2013.
Returning parliamentarians
- Former parliamentarians returning to the Parliament will join the 2004 Act arrangements, and any pension being paid to a former parliamentarian under the PCSS will be suspended. Payment of the suspended pension will recommence once the parliamentarian leaves the Parliament again provided the parliamentarian is not under age 55, in which case the payment will be deferred until the parliamentarian reaches that age (or becomes invalid or dies earlier than that age).
Salary sacrifice
- Parliamentarians covered by the 2004 Act arrangements are able to salary sacrifice up to 50% of their total parliamentary salaries to superannuation. This is provided for in the Remuneration and Allowances Act 1990.
- The 2004 Act arrangements satisfy the Superannuation Guarantee (Administration) Act 1992.
Administration
The 2004 Act arrangements are administered by the Departments of the Senate and the House of Representatives, as appropriate.
