VE Super or salary increases
On 23 December 2016 the new RMIT Vocational Education Workplace Agreement 2016 (the VE EA) came into operation.
One of the improvements to conditions contained in the VE EA is a gradual increase to Superannuation contributions made by the University. The increases (found at clause 31 of the VE EA) are as follows:
- 1% increase immediately upon approval
- 0.75% increase 31 July 2017
- 0.75% increase 31 July 2018
These increases only apply to the following staff:
- continuing staff; and
- fixed term staff who have a service of 12 months or greater
The increases are automatic and will be applied without you needing to do anything.
12 Months Service
The required criteria for fixed term staff is to have ‘12 months service or more.’ Once a fixed term staff member accrues 12 months service that staff member will then have all Superannuation increases which have occurred so far applied from that date onwards. The opt-out option described below will be made available.
A staff member with no prior service is offered a 2 year fixed term contract commencing 1 January 2017. Upon commencement the staff member receives the standard 9.5% Superannuation. At the 12 month employment anniversary (1 Jan 2018) the staff member receives an immediate 1.75% increase to Superannuation contributions (comprising of the initial 1% increase and the 0.75% increase of 31 July 2017). The staff member will also receive the final 0.75% increase to Superannuation on 1 July 2018. The Staff member will be offered the opt-out option when qualifying for the increase after 12 months.
The increase is not retrospective. It applies from the date of 12 months service.
Casual service is not counted for the purposes of this entitlement. Also if there are gaps in between fixed term engagements then this may break the service.
New continuing staff who join will have the Superannuation increases applied and will start at the current increased rate. The opt-out will be made available upon commencement.
If you meet the criteria for receiving the Superannuation increases you also have an opt-out option. If you prefer you may opt-out of all of the Superannuation increases and have all of the increases applied to your salary instead. The 1%, 0.75% and 0.75% increases will all be applied to your salary at the appropriate time and your Superannuation contribution will remain unchanged.
The Opt-out is a once only, all or nothing decision and is applied to all three increases. You cannot opt-out of only some of the increases and you cannot change your mind at a later date.
If you don’t pick the Opt-out
The increase will be made to your Superannuation unless you opt-out. If we don’t hear back from you within a reasonable period of time then you will have missed the opportunity to opt-out.
Defined Benefits Funds
If you are one of a small number of staff who meet the conditions for the Superannuation increases and have a defined benefits fund then you will automatically be assumed to have opted-out. The increases will be applied to your salary. This is because the rules of your fund generally don’t permit any additional increase to the employer contribution percentage.
When does this start?
The first 1% increase came into effect 23 December 2016. Now that everyone has returned from leave we can collate everybody’s preferences. We will then provide everyone with backpay to their Super or salary accordingly. This should happen in March and we will send out an email confirming when it has occurred.