The Chief Executive Service (CES) and Senior Executive Service (SES) were introduced in the NSW public sector as part of the Government's program of public sector reform in 1989. They consist of:
- Public Service Department Heads
- Heads of Public Authorities
- Senior Executives of Public Service Departments
- Senior Executives of Non-Public Service Divisions of the Government Service, Public Authorities and the Teaching Service.
Membership and contribution options
As an SES officer you have a number of membership and contribution options. You can:
- continue your contributory membership
- cease your contributory membership and defer your benefit with PSS for payment at a later date. If you cease your contributory membership, you will still be required to pay, as a minimum, your employer's cost of SG contributions
- cease your contributory membership and roll over your lump sum to a complying superannuation fund, Approved Deposit Fund (ADF) or Retirement Savings Account (RSA) of your choice. If you cease your contributory membership you will still be required to pay, as a minimum, your employer's cost of SG contributions.
If you defer your benefit with PSS, you will not be eligible to rejoin the scheme as a contributory member at a later date. A benefit deferred is payable from the scheme's early retirement age (55), provided you have ceased the employment that gave rise to the deferred benefit, or upon earlier death or total and permanent disability.
Pension rights are generally not retained if you defer your benefit with PSS or roll over your benefit.
You can elect at any time to cease your contributory membership of PSS and defer your benefit with PSS or roll over your benefit while you remain an SES officer. Additionally, if you cease your contributory membership and elect to defer your benefit with PSS, you can at any time rollover your deferred benefit to another complying superannuation fund, ADF or RSA.
If you elect to defer your benefit with PSS or roll it over within 12 months of your SES appointment, the salary used to calculate your benefit will be the salary paid prior to your appointment as an SES officer. However, if you have been an SES officer for more than 12 months, your deferred benefit or the amount you can roll over will be calculated based on your nominated superable salary.
Calculation of superable salary and oncost liability
You are required to meet, from your salary package, your employer's liability for the superannuation benefits you accrue during your SES service. This liability is known as the employer oncost and is deducted from your before-tax income. It is additional to your personal (employee) contributions.
The employer oncost liability is determined as a percentage of your superable salary in accordance with actuarial advice. Therefore, the actual dollar amount of your oncost liability will depend on your superable salary figure.
The maximum employer oncost percentage payable by any officer is 30% of the officer's superable salary.
STC Fact Sheet 8: Calculation of superable salary and oncost liability and membership options for members of the Chief and Senior Executive Service (SES) has further information including details about:
- nomination of superable salary
- employer superannuation liability
- formula for calculating superable salary and oncost liability
- employer oncost tables
- membership and contribution options
- option to salary sacrifice personal contributions
- superannuation tax rules since 1 July 2007.
There is also further information about your scheme membership in the SES Guidelines on the NSW Department of Premier and Cabinet's website, www.dpc.nsw.gov.au.