Contributory Scheme members
|
As a Contributory Scheme member, there are a few ways you can improve your future benefit. They include:
Personal contributions and Salary Sacrifice
You can contribute up to 15% of your salary to the Contributory Scheme. You can choose to make your contributions to the Contributory Scheme either as a personal contribution (after tax) or as a Salary Sacrifice contribution (before tax). It isn't possible to split your contribution between the two methods when contributing to this scheme.
For many members, converting current personal contributions into Salary Sacrifice creates a tax saving that can be used to increase your contribution rate, and therefore your final benefit.
|
 |
Super Co-contribution
If you're making personal contributions (not Salary Sacrifice) to the Contributory Scheme, these contributions are eligible for a Super Co-contribution payment as long as you satisfy the other eligibility criteria. However, if you're Salary Sacrificing to the Contributory Scheme you'll need to make personal contributions to the RBF Investment Account to qualify.
Purchasing non-contributory or past service
As a member of the RBF Contributory Scheme, you're able to purchase previous periods of non-contributory service within the Tasmanian public sector under certain conditions.
For example, if you've taken leave without pay to raise children and contributions to super were not made during this time, you can purchase this period of service and increase your final benefit.
Other types of service can be purchased to increase your benefit, such as periods immediately before becoming a contributor where you were employed in an Agency, and periods of service as an exempted married or part-time employee.
Your final benefit is calculated using a formula which reflects your length of service, rates of contribution, employment percentage and full time equivalent salary averaged over the last three years of service. Therefore, increases to any of the components of the formula will increase your final benefit.
To find out more about purchasing non-contributory service, read the fact sheet or contact RBF.
Upgrading past rate of contributions
The minimum contribution rate for most Contributory Scheme members is 5% of salary. The contribution rate can be increased to a maximum of 15%.
As a Contributory Scheme member, you're able to increase your past rate of contributions up to a maximum of 11% of salary. This will help to improve your final benefit.
To find out more about upgrading past rate of contributions, read the fact sheet or contact RBF.
|
