Division 5 members
For members of Division 5 (Accumulation Scheme) by reducing your working hours and, therefore, salary, you will receive less into your super as employer contributions.
There are a few ways you can make sure your super doesn’t fall behind, depending on your current circumstances:
- You could make additional voluntary contributions
- If you have reached your preservation age, you may access a Transition to Retirement Pension (TRP). The TRP could help supplement your reduced See the Income Stream booklet for more information.
- Your spouse or de facto partner could split some of their super contributions to you. See the Contribution splitting page for details.
- You could roll in super from other funds. See the Contributions page for information
- You may be eligible for government co-contributions if you are under a certain income threshold and make contributions to your super. See the ATO for more information.
Any insurance you have that is linked to your salary will also be affected by working part time, so checking you still have enough cover for your needs is a good idea.
Division 2 and 3 members
Any contributions points earnt while you are working part time will accrue at your part time rate. For example, if you are working 50% of the week, you will accrue points at half your full time rate.
However, your retirement benefit will still be calculated as though you were working full time.
An example (applicable to Divisions 2 and 3):
Marc, a Division 2 member has worked 20 years full time and has contributed 6% for the whole period of membership. His defined benefit is based on the number of contribution points that he has accrued over the past 20 years, which at 6% full time is one point per month, or 240 points in total.
He then becomes a part time employee and works part-time (0.5 FTE) for 2 years before retirement. This means that:
- Marc contributes 6% of his part time salary
- He accrues contribution points at 0.5 FTE (ie. one-half point every month).
- In the 2 years he accrues another 12 points, giving him a total of 252 points at retirement.
- BUT his FTE salary is still used in the calculation of his retirement benefit.
Division 4 members
The benefit you receive at retirement is calculated based on factors such as contributions, your age, level of continuous service and a salary-based minimum.
When you are working part time, you will pay regular contributions based on your part time salary.
However, even if you are working part time immediately before retirement, the salary-based minimum is calculated on your full time salary.
In general, benefits as a part-time employee will build at a slower rate (because contributions and/or contribution points based will be based on your part-time salary).
Changes in classification
If your salary has reduced as a result of a change in your grade classification, ElectricSuper has conditions in our Rules to ensure you are not disadvantaged. If you need more information, please call our Helpline on 1300 307 844.
If you have reached your preservation age, you may be able to supplement your income
If you have reached your preservation age and have enough available super, you may be able to access a Transition to Retirement Pension (TRP). The TRP could help supplement your reduced income. See the Income Stream booklet for more details.
Salary Definitions from ElectricSuper Rules
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