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Tuesday, 20 June 2017
Page: 4298

Senator GALLAGHER (Australian Capital TerritoryManager of Opposition Business in the Senate) (12:32): The Superannuation Amendment (PSSAP Membership) Bill 2016 enables certain members of the Public Sector Superannuation Accumulation Plan, PSSAP, who move to non-Commonwealth employment to choose to remain a contributory member of the scheme. Labor supports this bill.

The PSSAP, which was established on 1 July 2005, is the current default fund for new Commonwealth employees and employees of prescribed Commonwealth entities. The introduction of the PSSAP was a sensible modernisation and brought public servants' superannuation into line with community expectations and the superannuation accumulation arrangements available to most people. However, at present PSSAP members are unable to remain as contributory members of the scheme when they move to non-Commonwealth employment. They must either maintain multiple superannuation accounts or consolidate their super by moving the monies in their PSSAP account to another superannuation account.

This bill removes the restrictions on ex-public servants who choose to move to other industries and want to continue contributing to their existing superannuation account. The bill will enable PSSAP members who move to non-Commonwealth employment to maintain, contributory membership of the scheme. This means that PSSAP members who move to non-Commonwealth employment will not be forced to maintain those multiple accounts or move their balances to other accounts. The changes will better align PSSAP with superannuation schemes in the superannuation industry which commonly enable members to remain contributory members when they change employment. The changes will reduce transaction costs for these individuals, increase their retirement income and enhance the flexibility of the superannuation arrangements. We are supporting this bill, which will remove those restrictions on ex-public servants who want to remain within the PSSAP scheme.