The Contributory Scheme is a defined benefit scheme. Benefits are based on a formula which takes into account salary, length of contributory service and contribution rates.
The scheme was open to all eligible permanent, temporary and contract and public sector employees who were employed prior to 15 May 1999.
The Contributory Scheme was closed to new employees with effect from 15 May 1999. All employees who commenced work in the public sector on or after that date are required to join another complying super fund prior to commencing employment.
For more information about the Contributory Scheme, please read the Contributory Scheme - Member Booklet.
Can I still join the Contributory Scheme?
Although the Contributory Scheme was closed on 15 May 1999 to new members, there are still some people who may apply to join.
Permanent part-time employees
Employees who have been continuously employed in a permanent part-time capacity since before 1 July 1994 and have not previously elected to join the Contributory Scheme, may elect in writing at any time to become a Contributory Scheme member.
Married female employees
Married female employees who are not Contributory Scheme members and:
- were employed in a permanent capacity in the public sector before 1 July 1982; and
- have been continuously employed since that date;
may elect in writing at any time, to become a Contributory Scheme member.
Employees not permitted to contribute on medical grounds
Permanent employees who before 1 April 1987 were not permitted to join the Contributory Scheme on medical grounds may elect in writing at any time, to become a Contributory Scheme member.
How is my Contributory Scheme lump sum entitlement calculated?
Your entitlement is generally calculated using the following factors:
- your final average salary over the last three years of your employment;
- your length of contributory service;
- your rate of contribution (the basic rate is 5% and the maximum is 15%); and
- your adjusted benefit multiple which is calculated by reference to your contribution rate or rates, your employer’s contribution rate and the length of your contributory service.
By increasing your contribution rate you can significantly improve your benefit.
What contributions do I make to the Contributory Scheme?
The minimum contribution rate is 5% of salary for most members. The maximum rate is 15% of salary and members can choose to increase contributions in increments of 1%. Your contributions are deducted from your fortnightly pay by your employer. After-tax contributions are counted towards your non-concessional contributions limit.
You can choose to salary sacrifice your contributions to the Contributory Scheme. These contributions will count towards your annual concessional contributions limit.
What are the advantages of being a Contributory Scheme member?
Your benefit is based on your final average salary over the last three years of your employment.
You have Death and Incapacity cover for 24 hours a day, seven days a week. This is regardless of whether you are injured or sick in or out of the workplace.
You can choose from a variety of income streams in retirement, including a Contributory Scheme Life Pension.
What happens to my money if I resign?
If you resign from the public sector before you reach preservation age, your Contributory Scheme account will be closed and your entitlement will be calculated as at your date of resignation.
For more details on how your benefit is calculated and your options regarding accessing your benefit, please read the Contributory Scheme: Resignation Benefit for members under preservation age fact sheet.
What happens to my money when I retire?
When you reach preservation age and retire, you may be able to access a range of retirement products. The retirement section has some useful information on this topic. You may also read the Contributory Scheme: Retirement benefits for members over preservation age fact sheet.
What happens if I receive a redundancy?
If you resign or receive a redundancy from the Tasmanian public sector you should read the information that is relevant to you in the following fact sheets:
Contributory Scheme - Redundancy process (members joined after 30 June 1994) fact sheet
Contributory Scheme - Redundancy process (members joined before 1 July 1994) fact sheet
Redundancy administrative process fact sheet