The Government (or Employer) Funded Portion (GFP) of superannuation is the only component of a separation payment which the Act takes into account in the assessment of compensation entitlements.
This amount constitutes some 2.5 times an employee's contribution.
|
Example |
|
The employee's superannuation lump sum is $30,000, comprising the employee's contributions multiplied by 2.5. |
|
To separate the GFP, the following formula should be adopted: |
|
total lump sum amount x (2 ÷ 7) = employee's contribution |
|
or |
|
$30,000 x (2 ÷ 7) = $8,571.43 (which Comcare will not have regard to) |
|
The balance is $21,428.57 (GFP) which will be used in incapacity calculations. |
All other components of the separation payment (including severance pay, pay in lieu, long service leave and so on) are not incorporated into a compensation calculation.
Such payments are more related to the act of retrenchment, rather than being associated with salary, wages or pay; these are simply not taken into account by the Act.