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TELECOM AUSTRALIA SUPERANNUATION SCHEME (TSS)
The following is a summary of the TSS Scheme. Full details can be found in the Trust Deed and Determinations. Members should not rely of this summary. Before making any decisions, members should consult the full documentation and check for currency.
INDEX TO SUMMARY 1. DATE OF COMMENCEMENT 2. COVERAGE 3. BENEFIT PAYABLE 4. FORM OF BENEFIT 5. FINAL AVERAGE SALARY 6. MAXIMUM LEVEL OF BENEFIT 7. FUNDING 8.1 CONTRIBUTION RATES & RELATED BENEFITS 8.2 ELECTION TO VARY CONTRIBUTION RATE 9. BENEFIT ACCRUAL RATES 10.1 AGE RETIREMENT 10.2 RESIGNATION BENEFIT 10.3 RETRENCHMENT BENEFIT 10.4 TOTAL AND PERMANENT INVALIDITY BENEFITS 10.5 DEATH BENEFIT 11. MEDICAL EVIDENCE 12.1 NORMAL LEAVE WITHOUT PAY 12.2 SICK LEAVE WITHOUT PAY 12.3 MATERNITY/PARENTAL LEAVE 12.4 SECONDMENTS 13.1 TRANSITIONAL ARRANGEMENTS EMPLOYEES IN CSS 13.2 SUPPLEMENTARY CONTRIBUTIONS 13.3 PHASE-IN OF ACCESS TO LUMP SUM 13.4 TIME TO MAKE DECISION TELECOM AUSTRALIA SUPERANNUATION SCHEME (TSS)The scheme will apply from 1 July 1990.
The scheme will cover Telecom Australia employees but will not
cover those staff employed directly by Joint Venture companies.
Staff on secondment will be covered. The benefits to be paid are fully defined and are not dependent on earning rates of monies invested. The new scheme will provide a lump sum as the only form of benefit for all types of cessations. (transitional deleted) See Section 13. Transition Arrangements. Benefits in this scheme are based on Final Average Salary (FAS). FAS is defined as the average of the salary for superannuation contribution purposes on the three birthdays on or preceding cessation. Salary for superannuation contribution purposes will be the normal permanent salary received on a members birthday. The salary may include certain allowances like higher duty allowances, shift penalties or proficiency allowances, but does not include commissions or any bonus for sales performance with the exception of those staff who for superannuation purposes have a full time salary equivalent (FSE). Where a reduction in actual salary occurs, the salary for superannuation contributions and benefit purposes will be frozen at the previous level until such time as the member's actual salary on their birthday exceeds the previous fixed level.
In the case of part time employees, the FAS will be retained as
the equivalent full time FAS, with the benefit accrual rate
varying in accordance with the actual hours worked.
Calculation in this manner provides simplicity in determining a part time members benefit, especially as their hours may increase or decrease over time and /or work full time then part time hours. There will be no limit to the maximum benefit received. Benefits will be totally dependent on years of contributory service, contribution rates and F.A.S. However, different taxation treatment will be required for benefits which exceed the Reasonable Benefit Limits (R.B.L.'s) as defined by the Insurance and Superannuation Commission.
8.1 CONTRIBUTION RATES AND RELATED EMPLOYER BENEFITS
Members will be entitled to contribute at the following
percentage rates of salary for superannuation purposes.
Members may elect to amend their rate of contribution every 3 months. Members will accrue a lump sum benefit for each year of contribution as detailed in the following table: Contribution Benefit/Year Column 1 0% 8.0% of FAS Members contribution as a 1% 10.4% % of salary 2% 12.8% 3% 15.2% Column 2 4% 17.6% Lump sum benefit for each 5% 20.0% year of contributory service Catch up Rates 6% 22.4% of FAS 7% 24.8% 8% 27.2% 9% 29.6% 10% 32.0%Pro-rata benefits will be paid for completed months of contributory service on cessation. On reaching an eligible retirement age, a member will be entitled to a lump sum benefit expressed as a multiple of FAS and calculated in accordance with the following formula.
Lump Sum Benefit = Years of Contributory Service x Benefit Accrual Rate x FASThe Multiple of F.A.S. (i.e. Years of Contributory Service x Benefit Accrual Rate) for members with differing contribution rates is calculated by adding (together) the percentages of F.A.S. for which a member has contributed over his or her period of membership multiplied by the years of contributory service at each rate. Members with over 5 years of Contributory Service On resignation prior to attaining age 55, members will be entitled to their accrued benefit. The accrued benefit is a multiple of FAS calculated as follows: Lump Sum Benefit = Years of Contributory Service x Benefit accrual rate x FASBenefit accrual rate will vary dependent upon the member's level of contribution. The member will receive benefit in 2 components: 1. Cash component: based upon the member's level of contribution 2. Preserved component: based upon the employer financial level of benefit. The preserved component will be paid into a "preservation" fund of the member's choice. A "preservation" fund is not allowed to pay out the money in cash until a member attains 55 years of age. Members with under 5 years of Contributory Service On resignation, members in this category will receive a pro rata amount of their accrued benefit. The pro rata benefit is defined as follows: End of 1st 3 Mths to End of 1st Year * 40% of accrued benefit End of 2nd Year * 55% of accrued benefit End of 3rd Year * 70% of accrued benefit End of 4th Year * 85% of accrued benefit End of 5th Year * 100% of accrued benefit After Year 1, the vesting will progress on a pro rata basis for each completed month of contributory service. ie at a rate of 1.25% per completed month. The accrued benefit is calculated as follows: Lump Sum = Years of contributory service x Benefit accrual rate x FASBenefit accrual rate will vary dependent upon the member's level of contribution. Members will receive the benefit in 2 components. Cash - based upon the member's level of contribution. Preserved - based upon the employer financed level of benefit. The preserved component will be paid into a "preservation" fund of the member's choice. A "preservation" fund is not allowed to pay out the money in cash until a member attains 55 years of age. The retrenchment benefit will be the full accrued benefit regardless of the length of service i.e. full immediate vesting applies. Subject to confirmation by the Insurance and Superannuation Commissioner, when retrenchment occurs between 1 July 1990 and 30 June 2000, the entire benefit will be payable in cash. 10.4 TOTAL AND PERMANENT INVALIDITY BENEFITDefinition of total and permanent invalidity A benefit will be paid on the grounds of total and permanent invalidity when it is considered that the person is unlikely ever to be able to work again in a job for which the person is reasonably qualified by education, training or experience or for which the person could reasonably be qualified after retraining. Invalidity Benefits
Members will not be entitled to the invalidity benefit after age
60. In such circumstances, the retirement benefit will be
payable. The invalidity benefit will be paid in the form of a
lump sum. The benefit is based upon:
Death benefit will be a lump sum payable to: The amount of the lump sum benefit on death will be calculated on the same basis as invalidity benefit, or if the member was over age 60 at the date of death, the accrued benefit at the date of death. There will be no medical examination required for entry into the Telecom Superannuation Scheme. Members of the current CSS transferring to the Telecom scheme who hold a Benefit Classification Certificate (BCC) will have this restriction eliminated. The Employer and the Trustees will reserve the right to seek medical evidence if either considers it appropriate for new entrants. However, such a right is not intended to be used unless there is evidence of adverse selection against the scheme or there is a change in community standards regarding medical evidence for superannuation schemes.
Acquired Immune Deficiency Syndrome (AIDS) (a) For periods of up to 12 weeks on approved leave without pay Members will be required to contribute to the scheme. Members may elect to contribute at the 0% rate. Members will be able to take advantage of the catch up options upon return to work. (b) For periods of over 12 weeks on approved leave without pay Members will be ineligible to contribute to the scheme for the entire period. Members will be required to contribute to the scheme. Members may elect to contribute at the 0% rate. Upon return to work members will be able to avail themselves of the "catch up" options. For the leave without pay component of this leave the member may elect to move to the 0% contribution (at beginning of period) and accrue a retirement benefit of 8.0% p.a. Upon return to work, members will be able to avail themselves of the "catch up" options. Telecom employees who are CSS members and on secondment to other organisations (e.g. API, Union's, TAI) will be eligible to transfer to the TSS provided the seconding body pays the employer's contributions. 13.1 TRANSITIONAL ARRANGEMENTS EMPLOYEES IN CSSEmployees who transfer in the Telecom scheme will receive a credit for years of contributory service in the new scheme equal to years of contributory service in the existing CSS i.e. on a 1 for 1 basis. These years of contributory service will be expressed as a multiple of FAS of 0.2 for each credited year. Example: Membership in the existing CSS equals 15 years, thus 15 years credit in the new scheme. This represents a multiple of FAS of 0.2 x 15 = 3 x FAS.
Those members who have elected to contribute supplementary contributions in the existing CSS and who elect to transfer into the Telecom Scheme will receive a credit, (in addition to the credit given under 13.1 above) in the form of a multiple of FAS, for those contributions.
The Multiple will be calculated by: Example: Member who has a total accumulation of supplementary contributions and interest rate of $32500, a FAS of $25000 and has 20 years of contributory service in the CSS.
credits received (as multiple of FAS)
No longer relevant. Access was restricted for the first 3 years No longer relevant. Two periods were allowed to change to TSS.
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