Local Government (State) Award 2014

 

INDUSTRIAL RELATIONS COMMISSION OF NEW SOUTH WALES

 

Application by New South Wales Local Government, Clerical, Administrative, Energy, Airlines & Utilities Union, Industrial Organisation of Employees.

 

(Case No. 2016/00123849)

 

 

VARIATION

 

1.         Delete Clause 14, Superannuation Fund Contributions, of the award published 22 August 2014 (376 I.G. 817), and insert in lieu thereof the following:

 

14.       Superannuation and Related Arrangements

 

(i)         Superannuation Fund Contributions

 

a)         Subject to the provisions of the Industrial Relations Act 1996 (NSW), the employer shall make superannuation contributions to the Local Government Superannuation Scheme and not to any other superannuation fund.

 

(ii)        Salary Sacrifice Arrangements specific to Superannuation

 

a)         For the purposes of this sub-clause:

 

i.          "Eligible employee" means an employee with at least ten (10) years continuous service with the employer who has an accrued entitlement to long service leave under the Award that is in excess of the long service leave entitlement that the employee would have accrued if covered by section 4 of the Long Service Leave Act 1955 (NSW).

 

ii.         "Excess LSL" means the long service leave that an employee has accrued under the Award that is in excess of the long service leave that the employee would have accrued if covered by section 4 of the Long Service Leave Act 1955 (NSW).

 

iii.        "LSL" means Long Service Leave.

 

iv.        "LSL Act" means the Long Service Leave Act 1955 (NSW).

 

v.         "Ordinary Time Earnings" has the same meaning as in section 6(1) of the Superannuation Guarantee (Administration) Act 1992 (Cth).

 

vi.        "Superannuation Fund" means the Local Government Superannuation Scheme.

 

b)         Subject to this clause, eligible employees may, with the consent of the employer, cash out some or all of their Excess LSL.

 

c)         Any Excess LSL cashed out in accordance with clause shall be paid to the employee at the employee’s ordinary pay.

 

Example: A full-time employee with 10 years’ continuous service with the employer accrues 13 weeks LSL under the Award, whereas they would have only accrued 8 weeks LSL if covered by s4 of the LSL Act.  After 10 years’ service, the employee would have up to 5 weeks Excess LSL which may, with the consent of the employer, be cashed out.

 

d)         Eligible employees who have Excess LSL cashed out under this clause must enter into a Salary Sacrifice Arrangement for the equivalent amount to be paid into the Superannuation Fund as Ordinary Time Earnings, unless the employee has reached their concessional contribution cap.

 

e)         Notwithstanding clause 13(vi) of the Award, any Salary Sacrifice Arrangement made under this clause shall not be treated as an approved benefit for superannuation purposes.

 

2.         This variation shall take effect on and from 1 July 2016.

 

 

 

 

M. J. WALTON J , President

 

 

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Printed by the authority of the Industrial Registrar.