The basic benefit, AEC & SANCS
Generally, all members of SASS are also automatically members of the State Authorities Non-contributory Superannuation (SANCS) Scheme. The employer-funded basic benefit and where applicable the Additional Employer Contribution (AEC) and Superannuation Guarantee (SG) shortfall amounts are payable from this scheme. In addition, any co-contributions or Low Income Superannuation Contributions (LISC) from the Commonwealth Government in respect of a member are payable from the SANCS Scheme.
As a SASS member, you are entitled to a lump sum basic benefit in addition to your other SASS benefits.
The basic benefit is 100% employer funded and generally accrues at the rate of 3% of your final average salary for each year of service.1
You are eligible for the basic benefit as long as you do not receive a similar employer-financed benefit from another scheme. It is paid to you when you reach your preservation age and satisfy a Commonwealth Government condition of release for payment.
1 Due to tax payable by the fund on employer contributions since 1 July 1988, the basic benefit is effectively paid at around 2.55% per year of service.
Additional employer contribution
The Additional Employer Contribution (AEC) account is an accumulation style superannuation benefit which employers make contributions into each month for eligible employees. If you are an eligible employee, your employer will contribute the equivalent of 0.25% of your salary for the 2013–14 financial year and 0.5% of your salary for the 2014–15 and later financial years. This rate may change should the Superannuation Guarantee rate change. Only SASS members whose employment after 30 June 2013 was subject to NSW Public Sector Wages Policy are eligible to receive AECs.
Each monthly contribution is allocated to a member’s AEC account with contribution tax of 15% being deducted. The contributions accumulate in the AEC account and are adjusted for investment earnings each month, with the balance of the account payable as a lump sum benefit at exit. If a benefit is deferred the AEC account is rolled into the basic benefit account and will, from that time, form part of the deferred basic benefit account.
For further information on the AEC refer to STC Fact Sheet 20: SANCS Additional Employer Contributions (AEC) account.