GOVT SUPER SCHEME RESTORED

The Labour Government has announced the re-introduction of a Government Superannuation Scheme for state servants, which includes employees of the Department of Corrections. State Servants did have a scheme previously but the National Government abolished this is 1992. That scheme was continued for then employees but for new employees from that date there was nothing.

This new scheme will commence on 1 July 2004. Employees can voluntarily elect to join it or not and will in its first year see a contribution by the employee, again by their election, of up to 1.5% of salary matched by an equal contribution by the Government. In 2005 the employee can move this up to 3% with a matching sum by the Government. It is anticipated after this that it will move by two further 1.5% steps to a maximum of 6% each. The scheme will be available through a choice of about 3 or 4 firms, which still have to be decided upon, and the contributions will be in your personal account. (Further details of the scheme are attached to this CANZ News).

The Council of Trade Unions (CTU), to which CANZ is affiliated to, has been involved in negotiating this scheme with Government.

Lyn O’Connor (CANZ National President) said, in welcoming the announcement and congratulating the CTU and Labour Government for the move, “Members of CANZ over the years have raised the issue of why there was not a superannuation scheme for them. This announcement puts right an injustice done in 1992. CANZ welcomes the voluntary nature of the scheme and the dollar for dollar matching of the members’ contribution and looks forward to members participating in the scheme. Following on our successful negotiations of our CEA in PPS and A & P this is a further boost to members conditions of employment and a direct benefit of CTU membership.”

John Slater
National Organiser