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IR super risks
Australia’s largest union representing Commonwealth public servants, the Community and Public Sector Union, has warned members that the Government’s new workplace relations laws risk undermining superannuation entitlements.
In a newsletter to members, the union has claimed the Government’s Work Choices legislation could be used to reduce employer superannuation contributions for unwary new public servants, particularly when the new choice of fund regime is applied to the Australian Public Service.
The union claims that the 15.4 per cent employer contribution mandated by the Government for members of the public service could be at threat after July 1, when the new choice regime comes into effect.
“As long as new recruits in Public Service Act agencies choose the PSSap default fund, they will get the 15.4 per cent super contribution,” the newsletter said. “However, if they choose another fund, the agency is only obliged to pay them 9 per cent.”
The union said public servants also needed to be careful in signing Australian Workplace Agreements that could last for five years and lead to other superannuation arrangements not attracting the 15.4 per cent contribution.
AUTHOR
Mike Taylor
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