The following information applies to superannuation arrangements for SES offices only, and has been prepared by the NSW Superannuation Office.

The NSW Parliament has recently passed legislation which alters the way in which applying to SES appointees is nominated in the public sector superannuation schemes. The amending legislation commenced on 8 June 1993. The schemes affected are:

• the State Authorities Superannuation Scheme (SASS)
• the State Superannuation Fund (SSF)
• the Police Superannuation Scheme (PSF) the Public Sector Executives Superannuation Scheme (PSESS) and
• the State Authorities Non-contributory Superannuation Scheme (SANCS)

Previously, under each of these schemes an SES officer could nominate an amount in addition to cash salary which he or she wished to have used as salary for superannuation purposes. In other words the whole or part of the cost of meeting employment benefits (excluding the superannuation contribution itself) could be superannuated. The total figure was called "nominated salary". This total amount was then used for benefit calculations and in assessing the level of employer contributions to be deducted from the officer's total remuneration package.

The maximum nominated salary amount was the officer's total remuneration package less superannuation contributions (or employer superannuation "on-cost"). A further limitation was that any increase in the level of non-cash employment benefits that was superannuated could not exceed the percentage increase in the total remuneration package at any time.

The new legislative provisions will alter the way in which nominated salary is defined under the various public sector schemes listed above.

The new arrangements require officers to nominate a total amount to be used as salary for superannuation purposes. This total amount will still comprise cash and non-cash components if the officer so desires. However, the limitation on increases in the nominated salary amount will be applied to the total amount of nominated salary rather than to the employment benefit component only as under the previous legislation.

Under the new arrangements the following will apply

• The minimum level that can be nominated initially will be the officer's monetary remuneration. This is the same as under the earlier provisions. But, if no later nomination is made, eg when an increase in the remuneration package occurs, the salary for superannuation will remain fixed at the amount irrespective of later changes in monetary remuneration.
• The maximum level of nominated salary will be the officer's total remuneration package less superannuation contributions (or employer "on-cost"). This is also the same maximum as applied under the earlier provisions.
• If an officer makes no nomination within the set period (28 days) after appointment, a default provision sets the salary for superannuation at the monetary remuneration level of the officer at the date 28 days after the appointment. If no later nomination is made, the salary for superannuation will remain fixed at that amount irrespective of later changes in monetary remuneration.
• Changes to the nominated amount can take place but only so that any percentage increase is not greater than the percentage increase in the officer's total remuneration package since the last election. Reduction may be made but not below the level of monetary remuneration of the office.
• Upon becoming reappointed or appointed to a new SES position a new nomination of salary may be made within 28 days. If no such nomination is made, the appointee will be taken to have elected to superannuate the minimum amount, ie the monetary remuneration of the officer's package at that date. Except for increases that do not exceed the percentage change in total remuneration package a fresh election of nominated salary only be available upon reappointment, or on appointment to another SES position.
• Special transitional provisions will apply to existing SES appointees. They will be given a 3 month period from 8 June 1993 in which to nominate a new amount of salary in accordance with these arrangements. If no action is taken to renominate, the existing nominated salary amount, or current monetary remuneration amount only, if no earlier nomination has been made, will continue to be used.

Chief Executives are requested to take the necessary action to bring these new arrangements to the notice of all SES officers. Any officer wishing to make a new nomination of salary should lodge such election with his or her employer by 8 September 1993.

For further information if desired, the SASB Advisory Service for the SES can be contacted on (02) 238 5169.

Please note that separate advice will issue shortly on changes to FBT arrangements. A series of seminars on SES remuneration and superannuation in the light of those changes will also be conducted by Daryl Dixon and the SES Unit, Premier's Department over the next few months.

R G Humphry
Director General