Part-time and casual work

PSS benefits are based on a number of factors such as your length of contributory membership, final average super salary and your contribution rate.

As a contributing PSS member your super benefit is calculated using the formula:

Final benefit accrual = FAS × ABM

For more detail on the PSS formula and ABM accrual, see Member and employer contributions.

Fortnightly ABM accrual can be calculated as:

Changing to part-time employment

Your PSS membership can support you in such a change, but your contributions and benefit may be affected.

Effect on your member contributions

If you become a part-time employee there is no effect on your fortnightly contribution rate until your next birthday. At that time, we will work out your new contribution amount. Your super salary for contribution purposes will still be your full-time equivalent salary. However, your contributions will be reduced on a pro-rata basis according to the number of hours you are approved to work as at your birthday. 

Both the member contribution and ABM accrual will be calculated based on the ratio of approved part-time hours to full-time hours.

Effect on productivity contributions

Productivity contributions are paid by your employer, based on your super salary. Your productivity contributions are paid on a pro-rata basis according to your part-time hours.

Effect on your benefit

If you change to part-time employment, your employer will continue reporting your full-time equivalent super salary to us. From your next birthday your ongoing ABM accrual will be reduced on a pro-rata basis according to the number of hours you’re approved to work as at your birthday. Any ABM already accrued before your birthday won’t be affected by your change to part-time employment.

Your part-time ABM accrual will be calculated as:

Full-time equivalent ABM accrual x part-time hours ÷ full-time hours

When your final benefit is calculated, it will be based on your full-time equivalent FAS and your ABM accrual.

Effect on death and invalidity benefits

PSS members generally have automatic death and invalidity cover. You may also be eligible to take out additional death and invalidity cover.

Your automatic cover consists of your current benefit accrual, plus an amount based on prospective service that is calculated as if you had continued to contribute until your 60^th birthday. Part-time employment may reduce the prospective element of your death and invalidity benefit, as well as your ongoing ABM accrual.

Going part-time because of ill-health

If you have to reduce your working hours because of a medical condition that is not related to compensation payments, you may be entitled to a partial invalidity pension. You can get more information about partial invalidity pensions from your employer.

If you reduce your hours because of a medical condition and a partial invalidity pension is granted, your benefit accrual will continue at the full-time rate but your contributions will be payable at the part-time rate. 

Changing to full-time employment

If you decide to return to full-time employment after a period of part-time work, there are a few things you need to know about your PSS membership

Effect on your contributions

If you become a full-time employee there is no effect on your fortnightly contribution until your next birthday. At that time, we will work out your new contribution amount. Your super salary for contribution purposes will still be your full-time salary, but your contributions will no longer be reduced on a pro-rata basis.

Effect on your benefit

If you change to full-time employment, your employer will continue reporting your full-time super salary to us. From your next birthday your ongoing ABM accrual will be increased to the full rate. Any ABM already accrued before your birthday won’t be affected by your change to full-time employment.

Effect on invalidity and death benefits

The prospective element of your benefit will be no longer be reduced (if it was reduced when you changed to part-time employment).

What you need to do

If you are considering changing your hours of work, contact your employer for more information. If you do change your hours, your employer will provide us with details of your approved work hours and we will automatically adjust your contributions from your next birthday.

You can also change your contribution rate but remember this will impact your ABM accrual. You should contact your employer to change your contribution rate.

Casual employment

Casual salaries

If you are a casual PSS member, you will have a notional salary reported to us, which is used to calculate your benefit entitlements. The notional salary is the annual salary you would have received in a year if you worked full-time and received an annual salary based on the hourly rate applicable to you on your birthday.

The hourly rate is determined using the hourly rate plus any recognisable allowances, payable to you on either:

• your birthday (if they worked on that day); or
• the next day you worked immediately after your birthday.

Full-time hours = the applicable fortnightly full-time equivalent hours for the position.

Annual notional salary is calculated by multiplying the hourly rate by the full-time equivalent hours and then by 313/12. We use 313/12 as there are 313 paydays every 12 years (or 26.08333 fortnights every year).

Your fortnightly contributions will be based on your contribution salary, which is usually what you actually earned in a particular fortnight—that is, your basic salary and any recognised allowances¹.

Inclusions

The contribution salary includes shift penalties and loadings for the non-availability of certain conditions of service, such as risk and recreation leave.

Exclusions

The contribution salary excludes overtime, compensation payments and any amounts for reimbursement of expenses, such as meal or car allowances.

¹You and your employer may agree upon an amount to be treated as super salary, and in rare cases super salary will not be the amount actually earned.

Compensation leave

If you are on compensation leave, your contribution salary for each contribution due day during that period of leave is the earnings you would have received if you worked the same hours as you did in your last complete fortnight worked. This may not be the same contribution salary as your last complete fortnight worked if your hourly rate has changed.