OLDER WORKERS TO BENEFIT FROM CHANGES TO SUPERANNUATION
Published Tuesday, 06 November, 2007 at 09:26 AM
Minister for Transport, Trade, Employment and Industrial Relations
The Honourable John Mickel
Older employees in the Queensland public sector who elect to work on beyond retirement age are to be financially rewarded.
Minister for Employment and Industrial Relations John Mickel today announced that the Queensland Government has amended superannuation arrangements for public sector workers to remove a barrier to public servants continuing to work.
Mr Mickel said from July 2007 State Government employees would continue to receive superannuation contributions irrespective of their age.
“Recent changes in superannuation laws support the State Government’s Experience Pays Awareness Strategy to encourage older workers to work beyond traditional retirement age,” Mr Mickel said
“In July 2007 amendments to federal legislation allowed for employees aged between 70 and 75 years be paid superannuation, although employees aged over 75 still remain excluded.
“The Queensland Government believes there should not be any disincentive to people remaining in the workforce for as long as they like.
“State Government employees will continue to receive superannuation contributions once they reach 70 and until they reach 75,” Mr Mickel said.
“However, from the age of 75 State Government employees will receive a payment equivalent to nine percent ordinary time earnings in lieu of a superannuation payment.
“This is good news for Queensland’s public sector employees and is fitting given the changes occurring in Australia’s workforce.
“Our workforce is ageing and the number of Australians aged 65 and over is projected to increase from 2.6 million in 2004 to between seven and nine million in 2051.
“While the growth of new entrants into the labour market is expected to decrease
by the 2020s, the working age population is projected to grow by fewer in a decade than it currently grows in a year.
“Our superannuation laws need to reflect these changes – people are and will continue to work beyond retirement age, and have every right to employer-funded superannuation contributions or an equivalent payment for as long as they choose to work,” Mr Mickel said.
“Hopefully other employers will follow the State Government’s lead for employees aged over 75 and continue to contribute in lieu of superannuation payments.”
Mr Mickel said the changes to superannuation entitlements support the aims of the Experience Pays Awareness Strategy to encourage employers to recruit, retrain and retain mature-age employees and encourage older workers to remain or re-enter the workforce.
The directive takes effect from July 1 2007 and applies to all public service officers, temporary and general employees employed under the Public Service Act 1996.
The Experience Pays Awareness Strategy is part of the State Government’s
$1 billion Queensland Skills Plan which aims to provide individuals and industry
with the skills and workforce for the 21st Century.
For more information on the Experience Pays strategy, visit www.experiencepays.qld.gov.au or call 1800 630 647
Ministerial contact: Chris Brown on 3237 1944 or Nathan Moir on 3235 4060
November 06, 2007
Minister for Employment and Industrial Relations John Mickel today announced that the Queensland Government has amended superannuation arrangements for public sector workers to remove a barrier to public servants continuing to work.
Mr Mickel said from July 2007 State Government employees would continue to receive superannuation contributions irrespective of their age.
“Recent changes in superannuation laws support the State Government’s Experience Pays Awareness Strategy to encourage older workers to work beyond traditional retirement age,” Mr Mickel said
“In July 2007 amendments to federal legislation allowed for employees aged between 70 and 75 years be paid superannuation, although employees aged over 75 still remain excluded.
“The Queensland Government believes there should not be any disincentive to people remaining in the workforce for as long as they like.
“State Government employees will continue to receive superannuation contributions once they reach 70 and until they reach 75,” Mr Mickel said.
“However, from the age of 75 State Government employees will receive a payment equivalent to nine percent ordinary time earnings in lieu of a superannuation payment.
“This is good news for Queensland’s public sector employees and is fitting given the changes occurring in Australia’s workforce.
“Our workforce is ageing and the number of Australians aged 65 and over is projected to increase from 2.6 million in 2004 to between seven and nine million in 2051.
“While the growth of new entrants into the labour market is expected to decrease
by the 2020s, the working age population is projected to grow by fewer in a decade than it currently grows in a year.
“Our superannuation laws need to reflect these changes – people are and will continue to work beyond retirement age, and have every right to employer-funded superannuation contributions or an equivalent payment for as long as they choose to work,” Mr Mickel said.
“Hopefully other employers will follow the State Government’s lead for employees aged over 75 and continue to contribute in lieu of superannuation payments.”
Mr Mickel said the changes to superannuation entitlements support the aims of the Experience Pays Awareness Strategy to encourage employers to recruit, retrain and retain mature-age employees and encourage older workers to remain or re-enter the workforce.
The directive takes effect from July 1 2007 and applies to all public service officers, temporary and general employees employed under the Public Service Act 1996.
The Experience Pays Awareness Strategy is part of the State Government’s
$1 billion Queensland Skills Plan which aims to provide individuals and industry
with the skills and workforce for the 21st Century.
For more information on the Experience Pays strategy, visit www.experiencepays.qld.gov.au or call 1800 630 647
Ministerial contact: Chris Brown on 3237 1944 or Nathan Moir on 3235 4060
November 06, 2007