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9.10 Notional Superannuation Contributions ('SC' amount) - SRCA only
The ‘SC’ amount is only applicable to incapacity payment calculations under S20, 21 and 21A i.e. calculations where a person has received a Commonwealth superannuation amount.
The SC amount is “the amount of superannuation contributions that would have been required to be paid by the employee in that week if he or she were still contributing to the superannuation scheme”.
The SC amount is added to the superannuation amount (the ‘SA’) and reduced from the incapacity payment.
As a result of amendments contained in the Safety Rehabilitation and Compensation And Other Legislation Amendment Act 2007 the SC amount is 5% of NWE for all clients who discharge on and from 27 April 2007.
9.10.1 Establishing the SC amount – SRCA only
The minimum contribution rates (i.e. the 'SC' amount) for the two military superannuation schemes are:
Defence Force Retirement and Death Benefits (DFRDB)
Military Superannuation and Benefits Scheme (MSBS)
The Incapacity Calculator calculates the appropriate SC amount.
9.10.2 Establishing the SC amount – Reservists - SRCA only
Generally Reservists will not be in receipt of superannuation under the DFRDB or MSBS military superannuation schemes unless they have undertaken a period of Continuous Full-Time Service (CFTS). However, it is possible that a Reservist may be in receipt of superannuation under another Commonwealth Government superannuation scheme and in some circumstances be subject to the superannuation rules (Ss20, 21 and 21A).
Where superannuation benefits are being received from a relevant Commonwealth Government scheme, it is necessary to establish the appropriate SC amount by contacting the Commonwealth Superannuation Corporation (for the CSS and PSS schemes) or the relevant Fund Administrator for other schemes or private funds to which the Commonwealth is making contributions to on behalf of the member.
Under some Commonwealth superannuation schemes, the rate of employee contribution is set by the member within a specified range (e.g. 2%-10% for the PSS Scheme), rather than being set at a uniform rate for all members of the scheme. The SC amount should be based on the minimum contribution rate at which the Reservist member was permitted to contribute, not on any higher actual rate at which the Reservist member was actually contributing.
If the person was discharged on or after 27 April 2007, the SC amount is 5% of NWE.
Example - Calculating the SC amount
Q. Member was part of the DFRDB Scheme, how much ‘SC’ should be held in calculations?
A. If the person retired prior to 27 April 2007 the SC amount is 5.5% as that is the amount they were required to contributeIf the person retired on or after 27 April 2007 the SC amount is 5% for everyone.