Some Commonwealth Government employees may gain access to the new choice of fund regime ahead of 1 July, next year if individual departments decide to make it available.
The Minister for Finance and Administration, Senator Nick Minchin said that the choice arrangements would be open to new Australian Government employees from 1 July, 2006, but that some employees may be offered earlier access.
He said that the choice arrangements would be the same as those which apply to private sector employees under the terms of the Superannuation Legislation Amendment (Choice of Superannuation Funds) Act 2004.
The minister outlined the time-table for the implementation of choice in the public service as being from July 1, next year, for new employees and members of the Public Service Superannuation Scheme accumulation fund.
However he said earlier access may be granted “if their employer agree to offer choice from a date on or after 1 July, 2005”.
Senator Minchin said that under the new arrangements, the PSS accumulation plan would be the default fund for Australian Public Service employers where an employee did not make a choice.
“Other employers participating in the plan must select their own default fund from 1 July, 2006, but may select the PSS accumulation plan,” he said.
Senator Minchin said the Government would be considering allowing choice for members of the Commonwealth Superannuation Scheme or the PSS defined benefits scheme, but that the circumstances were highly complex, particularly the unfunded elements.
