Members criticise changes to APSS - FAS freeze for many for years
CWU members have criticised changes to the APSS defined benefit scheme as very significant in terms of affect on super payouts and widespread in their impact on number of employees.
At my centre 4 out of 4 posties will be affected says a CWU delegate Lew Chapman, Atherton DC in Qld. That’s a 100% hit for those on the bottom of the salary ladder. I personally will not see any above inflation rise in my super salary until 2018 which will drastically affect my retirement outcome.
One member says:
I work as a Technician (PTO 7).
- My base salary is (rounded) $ 81,500.00
- My (AWOTE) super salary is $105,000.00
- My FAS is $100,000.00
I have 19 yrs service, after a quick calculation:
- After 19 yrs x 100,000 x 0.143= $271,700
- After 20 yrs x 100,000 x 0.143 = $286,000 No AWOTE)
- After 20 yrs x 104,000 x 0.143 = $297,440 With 4% AWOTE
This change will have a very significant affect on my Super payout. I don't think a lot of the members understand just how significant this change is for them. I congratulate the national office of the union for raising this issue.
A defined benefit scheme such as Post’s which is based on final average salary (FAS) pays a disproportionate benefit to those who have climbed the ladder to higher salaries. The vast majority of operational staff who remain at base level or a few steps up only barely stay in front of inflation with regard to their final benefit being sufficient for their needs in retirement.
Scope for additional savings to top up is also limited at these lower salary levels. Women in particular will be affected as they are more likely to have lost penalties for maternity leave and child care reasons. The original design of the scheme would have included the AWOTE indexation to ensure that those who experienced a reduction in salary for super purposes (i.e. temporary or permanent loss of penalties) would at least stay ahead of inflation eroding their benefit, while benefits increased exponentially for the few who could promote further up the ladder. AP’s claim of sustainability is a joke when one looks at executive salaries in AP.
