Commonwealth Superannuation Corporation Annual Report 2017–18
7. Our Superannuation Schemes
CSS
Commonwealth Superannuation Scheme
Overview of CSS
CSS is a public sector scheme established on 1 July 1976 by the CSS Act. It closed to new members on 30 June 1990. CSS is a hybrid scheme (part accumulation and defined benefit) where benefits derive from a member and an employer component.
The member and productivity components are the accumulation part. It consists of member and productivity contributions and fund earnings. The employer component is the defined benefit part. It is unfunded and generally paid as a lifetime non-commutable indexed pension (lifetime pensions are paid by the Australian Government).
CSS membership
Figure 1. CSS members and pensioners over five years
Note: Figures are at 30 June of each year; ‘pensioners’ represent the number of pension accounts, not the exact number of pensions (e.g. multiple recipients such as a spouse and orphan children may be paid under one account).
CSS administration
Member contributions
Members can make both basic and additional contributions to the scheme from their after-tax income. They can also voluntarily contribute into PSSap.
Figure 2. CSS member contributions
Note: This chart shows basic and supplementary contributions.
Employer contributions
Employers pay a fortnightly contribution into CSS, which is the productivity component. The amount is based on an individual member’s super salary.
Figure 3. CSS employer contributions over five years
Benefit payments
Lump sums and pensions
In most cases where we pay a benefit, CSS members have exited the scheme at retirement. Generally benefits cannot be paid until minimum retirement age is reached. Pensions are generally paid to former scheme members who have exited CSS and preserved their benefit for payment at a later date. Pension payments are paid by the Australian Government.
Figure 4. CSS pension payments over five years
Figure 5. CSS lump sum payments over five years
Note: Lump sums are paid from the CSS fund and by the Australian Government.
Invalidity and death benefits
CSS provides partial invalidity, full invalidity and death benefits.
Benefits are based on the entitlement the individual member would have received if they had worked to their maximum retirement age (usually age 65), subject to any pre-existing medical conditions being assessed.
Table 18. New full invalidity pensioners in CSS
|
2016–17 |
2017–18 |
|
|
Full invalidity pensioners |
20 |
19 |
Note: This table shows the number of new invalidity retirement certificates issued in the relevant reporting year (not the total number of invalidity pensioners).
Partial invalidity
A partial invalidity pension – a form of income maintenance – is paid when a contributing member’s salary is permanently reduced because of a medical condition.
Table 19. New partial invalidity applications in CSS
|
2016–17 |
2017–18 |
|
|
New applications |
3 |
0 |
Note: This table shows assessed applications including retrospective applications in the relevant reporting year.
Complaints
Table 20. Complaints received in CSS
|
2016–17 |
2017–18 |
|
|
Complaints received |
19 |
34 |
All complaints were resolved by 30 June 2018. Most complaints related to communication between CSC and the complainant, or to legislative changes to superannuation.
Changes to CSS’s legislation
The Superannuation (Cost of Administration) Regulations 2017 replaced the sunsetting provisions of the Superannuation (Cost of Administration) Regulations 1980, to ensure continuity in requirements. The new regulations require that all CSC’s costs related to the management of the CSS fund are paid by the CSS fund. The new regulations commenced on 21 December 2017.
The amended legal definition of marriage within the new Marriage Amendment (Definition and Religious Freedoms) Act 2017 is now also recognised under the Superannuation Act 1976. The amendments commenced on 9 December 2017.
The Safety, Rehabilitation and Compensation Legislation Amendment (Defence Force) Act 2017 amended the law relating to rehabilitation and compensation for Defence Force employees. From 12 October 2017, those amendments are also recognised under the Superannuation Act 1976.
In February 2018, the Treasury Laws Amendment (Putting Consumers First—Establishment of the Australian Financial Complaints Authority) Act 2018 was passed by Parliament which amended the Corporations Act 2001 and repealed the Superannuation (Resolution of Complaints) Act 1993.