Changes to PSSap and PSSap Ancillary
The Government has passed changes that will allow more flexibility for PSS, CSS and PSSap customers.
10 Sep 2020
More changes are coming!
On 27 August, the Government passed changes that will allow more flexibility for PSS, CSS and PSSap customers.
Here’s a summary:
If you’re in PSSap the changes may enable you to*
- receive both APS and non-APS employer contributions into your PSSap account at the same time, and
- make additional contributions** regardless of current employment arrangements.
If you’re in PSS or CSS the changes mean you may be able to* open a PSSap Ancillary account to make personal and non-APS employer contributions.
*Eligibility criteria applies for all customers—see the details below.
**Tax thresholds may apply.
When will the changes occur?
The changes will come into effect early next year. We’re working hard to implement these changes as quickly as possible, and we’ll let you know more soon.
Give me the details—what are the current and new eligibility rules?
The current rules are:
- While employed with an eligible employer (e.g. an APS department), no other employer contributions are allowed.
- Once you’ve left your eligible employer, you must meet the following criteria to continue contributing:
- previously employed by one or more* eligible employers for at least 12 continuous months, and
- have a new employer that pays superannuation guarantee contributions and elect for us to receive those contributions.
- If you re-join employment with an eligible employer, we’re unable to accept non-default employer contributions.
*Note that if you have had multiple eligible employers, there must not have been a break between each period of employment for at least 12 months to meet the continuous service requirement.
The new rules are:
- Once you’ve been employed by an eligible employer for at least 12 continuous months, we can accept all types of contributions regardless of your current employment arrangements (see Case Studies 1, 2 and 3).
PSS and CSS customers
The current rules are:
- You may only open and contribute to PSSap Ancillary while you’re a contributing customer of PSS or CSS.
- If you’re no longer a contributory customer of PSS or CSS, you can no longer open or make any additional contributions to PSSap Ancillary.
The new rules are:
- If you’ve been previously employed by an eligible employer for at least 12 continuous months and you’re a Contributing or Preserved customer of PSS/CSS, you can open a PSSap Ancillary account.
- Once you have a PSSap Ancillary account and have met the 12 continuous months employment rule, we can accept all types of contributions regardless of your current or future employment arrangements (see Case Studies 4 and 5).
Case Study 1
Mary started her first Australian Public Service job with the ATO 9 months ago. She’s passionate about gardening and has a casual job on the weekends with Bunnings. Unfortunately, because Mary hasn’t been working for the ATO for 12 months yet, her Bunnings employer contributions are unable to be paid to PSSap. Once she has been with the ATO for 12 months, Bunnings can pay contributions into PSSap.
Case Study 2
James just started a part-time job with CASA and decided to join PSSap. He had previously worked for an eligible employer many years ago and has met the 12 month rule from his previously employment. Because he has met the 12 month rule, if he has a second job, that employer is able to make Super Guarantee contributions to PSSap on behalf of James.
Case Study 3
Judy regularly works with the Australian Electoral Commission for 3 months at each election. Although she has worked for more than 12 months for the AEC in total, she doesn’t meet the 12 months continuous employment rule. When Judy is not working for the AEC, her account is Preserved. While her account status is Preserved, Judy is unable to make any contributions to PSSap.
Case Study 4
Aaron is currently contributing to PSS and is planning to retire at age 55. He has a component of his PSS account that is unable to be converted to a Defined Benefit pension and at age 55 he must rollover this amount to another superannuation fund.
Because he has worked for more than 12 consecutive months in the APS, he’s able to open a PSSap Ancillary account and elect for his lump sum to be rolled over to PSSap. He can also choose to make additional contributions to this account, including employer contributions if he obtains a new job after retiring from the APS.
Case Study 5
Katie worked for DHS for 10 years back in the 90’s and currently holds a Preserved PSS account. She has another superannuation account her current employer is paying into. She wanted to join PSSap Ancillary but was previously unable to. With the new changes in the rules, she is eligible to join PSSap Ancillary and to have her current employer contribute to that account on her behalf.
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