25^th July 2008

SUPERANNUATION SCHEME

CONTRIBUTIONS

Further to our CEA Update of 23rd July 2008 we have now received a more detailed response from the Prison Service on how the back dating of the contributions has and will be dealt with and an explanation on how to interpret the details contained on your pay advise slips on this matter.

The advice we have receive is as follows:

Both schemes will allow the payment of the backpay to be part of superannuation so the appropriate deductions will be made.

The Kiwi Saver scheme and the SSRSS scheme take a slightly different approach, but the end result is that both will deduct the relevant superannuation contributions for the back pay.

Those who belong to SSRSS will see two lines of superannuation deduction on their payslip purely because that scheme looks at the two items separately and deducts from each, rather than making one overall deduction for the two combined. So, SSRS scheme people will see one line on their payslip for superannuation for the back pay portion and another separate line for the superannuation relating to the current pay period.

Those who belong to Kiwi Saver will see only one superannuation line on their payslip but it covers both the backpay and the current pay altogether rather than looking at them separately the way SSRSS does.

For next weeks lump sum payment, Kiwi Saver will treat it as part of the scheme and it will be included in the superannuation deductions for that scheme. However, SSRSS does not include lump sum payments and there will be no contributions relating to the lump sum for SSRSS members.

This is not a decision taken by the Department, it is purely according to the rules of the scheme.

On behalf of the National Officers