In December 2014, new laws came into effect that provided for an additional superannuation benefit (SANCS AEC) for eligible NSW Public Sector employees in the SASS, SSS and PSS superannuation schemes. The new laws also backdated the effective date for this entitlement to 1 July 2013.
How much is the SANCS AEC?
The SANCS AEC commenced at 0.25% of salary from 1 July 2013 and was subsequently increased to 0.5% of salary from 1 July 2014.
Who is eligible?
Most public sector employees subject to the NSW public sector wages policy, which limits increases in employee related costs to 2.5% per annum, are eligible for the SANCS AEC.
Who isn’t eligible?
There are certain categories of members who are not eligible for the SANCS AEC, including public sector employees who received any increase in remuneration that was subject to the 2.5% cap under an award or other industrial instrument that did not factor in superannuation guarantee rate increases. These members will become eligible when that award or industrial instrument expires.
How and when will the SANCS AEC amount appear in my account?
The required system and process developments necessary to administer this benefit have been completed. State Super will collect the benefit amounts (including backdated payments) from employers and allocate them to a newly created accumulation style account which forms part of the member’s overall SANCS account. The SANCS AEC amount (including interest) will be listed separately on all future annual statements and benefit estimates.
Members who have deferred their benefit since 1 July 2013 will have the outstanding SANCS AEC amount (including interest) credited to their deferred account.
Any eligible member who has exited their Scheme since 1 July 2013 will receive their AEC benefit. Most of these members will receive a cheque for the accumulated benefit. Members whose AEC benefit must be preserved in the superannuation system will be able to elect to have the amount rolled over into another superannuation fund of their choice. Exited members will receive further information in the coming weeks. For further details, download STC Fact Sheet 20: SANCS additional employer contribution (AEC) benefit.