Opting out of a CSC super fund
What does this mean?
Your employee has chosen to stop contributing to a CSC super fund and as a result they’re opting out of that fund.
There are strict rules that your employees must follow when wanting to leave CSS or PSS
For CSS members
- For APS employers – your employee must enter into an employment arrangement that means they’re no longer eligible to contribute to CSS. For example, if a full-time permanent employee becomes a part-time temporary employee, they’ll need to choose another super fund to contribute to because part-time temporary employment is not an eligible employment status for CSS.
- For non-APS employers – your employee can:
- choose to join an employer-sponsored super fund but you must pay more than the minimum Super Guarantee (SG) amount into that super fund, or
- enter into an employment arrangement that means they’re no longer eligible to contribute to CSS. See the above example under APS employers.
For PSS members
Generally speaking, permanent employees contributing to PSS can’t ask for their employer contributions to be paid to another super fund. This is usually only possible if they elect to permanently cease their PSS membership, that is, they ‘opt out’ of PSS.
If an employee wants to opt out of PSS, they must be aware of and understand the implications of this decision. Opting out means they can’t contribute to PSS ever again, even if they have multiple memberships or change their mind. We recommend the employee seek financial advice when exploring this option. More information on ‘opting out’ of PSS can be found in the ceasing PSS membership factsheet.
If an employee does want to opt out of PSS and is fully aware of the implications, they must complete the election to cease membership form. The election to opt out can’t take effect until this form has been completed. We can’t accept an email or completed standard super choice form. This form also means the election to opt out can’t be backdated.
If by opting out of PSS your employee would be eligible for an ordinary employer-sponsored PSSap membership, they must join PSSap. However, they’ll then have choice of fund and can choose another super fund as soon as they’d like.If they aren’t eligible for PSSap, they must elect another super fund straight away.
If your employee has questions about opting out of PSS, they should reach out to us on 1300 000 377.
PSSap members just need to choose a new super fund and let you know
Employees in PSSap simply need to choose a new super fund and let you know. You may ask them to complete specific forms to provide you with this information – that’s entirely up to you.
What you need to do
For CSS and PSS members
- Review your employee’s super record as soon as possible. You can access member data reports in our Employer Services Online portal at any time. If changes need to be made to your employee’s record, email firstname.lastname@example.org as soon as you can.
- Put your employee’s exit date and reason* in an upcoming contribution file – that information will flow through to our system when you submit that file.
- Complete a departmental report and submit it to us.
For PSSap members
There’s nothing you need to do for PSSap members who are opting out. However, you should encourage your employees to tell you if they change their super fund. If you send us a contribution for an employee who has left PSSap, we’ll send that contribution back to you – we can’t accept contributions into the fund for members who have exited and rolled over or claimed their benefit.