April 2002 Volume 83 Number 4 "serving the protectors"
Police Super Update www.policesuper.sa.gov.au
By Micheal Hogg

Voluntary Member Contributions

Members of the Police Superannuation Scheme (the Scheme) are now able to make additional voluntary member contributions to the Scheme from their Pre-tax salary (Salary Sacrifice).

The voluntary member contributions will accumulate in a separate account (Voluntary Contribution Account), with a crediting rate declared by the Board, within the Scheme and will provide you with a separate lump sum superannuation benefit upon separation from SAPOL. The voluntary contribution account will be completely separate from your existing defined pension or lump sum superannuation benefit and will not attract any additional employer contributions.

You will need to consider the following information when deciding to make additional voluntary member contributions from your Pre-tax salary.

Voluntary Member Contributions paid from your pre-tax salary (Salary Sacrifice)
• The contributions are not considered part of your taxable income so your Pay As You Go (PAYG) (refer to definitions listed below) tax is reduced;
• The contributions are considered to be employer contributions and, in most circumstances, the contributions will be taxed when you withdraw from the Scheme;
• Upon withdrawal from the Scheme, the contributions will be preserved (within the Scheme or may be rolled over to a complying fund of your choice) until you reach the age of 55 or prior death or permanent disability;
• The contributions may increase your superannuation surcharge liability (refer to definitions listed below); and
• The contributions count towards your Reasonable Benefit Limit (RBL) (refer to definitions listed below).

Definitions

Superannuation Surcharge: Surcharge liability is a tax levied by the Federal Government on the amount of employer contributions paid to the superannuation scheme for high-income earners.

Reasonable Benefit Limit: The Reasonable Benefit Limit (RBL) is the amount of concessionally taxed superannuation the Federal Government deems is reasonable for a person to receive.

Pay As You Go (PAYG): PAYG is the taxation payable on gross salary and wages.

Advice

The Police Superannuation Office is not in a position to provide members with personal advice as to whether to make Voluntary Member Contributions from their pre-tax salary (salary sacrifice). It is recommended that members seek financial advice when making this decision.

Members interested in making additional voluntary member contributions need to contact the following to seek additional information and the relevant documentation.

Salary Sacrifice providers
• McMillan Shakespeare (Mr Ian Symons) – 8407 3555, 0411 767 676.
• Remunerator – 1 300 130 325.

Member Information

For information regarding superannuation contact the Police Superannuation Office or refer to the website at the top of the page. Group information sessions can be arranged upon request.

 
Police Superannuation office:
Ground floor, 30 Flinders St, Adelaide, 5000.
Postal Address: GPO Box 1539, Adelaide, 5001.
Internal postcode: 128.
Phone: 8204 2964 or 8204 2965.
Fax: 8204 2303.
E-mail: admin@policesuper.sa.gov.au
SAPOL Intranet: Police Superannuation,
Services, Business Service, FMSB.

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