Description
The Superannuation Legislation Amendment Act 1998 was assented to on 14 July 1998. The Act will introduce changes to the State Superannuation Scheme; in particular, it will reduce the discount rate that is applied when determining a contributor's retrenchment benefit. The discount rate that is currently applied is 8 per cent. This will be reduced to 4 per cent. This will have the effect of increasing the retrenchment benefit payable.
Detailed Outline
The Superannuation Legislation Amendment Act 1998 was assented to on 14 July 1998. The Act will introduce changes to the State Superannuation Scheme; in particular, it will reduce the discount rate that is applied when determining a contributor's retrenchment benefit. The discount rate that is currently applied is 8 per cent. This will be reduced to 4 per cent. This will have the effect of increasing the retrenchment benefit payable.
Although the Superannuation Legislation Amendment Act 1998 was assented to on 14 July 1998, the reduced discount rate will not apply until the date for the commencement of the appropriate amendment is proclaimed. This is anticipated to be the 1 October 1998.
Employers should advise their employees that the improved retrenchment benefits will not be available until 1 October 1998. Accordingly, if employees wish to take advantage of higher retrenchment benefits, they should wait until after 1 October 1998 to accept voluntary redundancy.
C. Gellatly Director General
Act
Overview
Compliance
- Not Mandatory
AR Details
- Date Issued
- Jun 13, 1998
- Review Date
- Dec 31, 2014
- Replaces
-
- Replaced By
-
Contacts
- Contact
- Contact us
- Phone
- 02 9228 5555
- Publishing Entity
- Department of Premier and Cabinet
- Issuing Entity
- Department of Premier and Cabinet