Latest Update - March 2022
State Super is working with the fund administrator and employers to update systems and processes to enable the Additional Employer Contribution (AEC) amounts to be paid and allocated to accounts. As the AEC rate increase has been backdated to 1 July 2021, this update will include the calculation and payment of amounts that were payable from 1 July 2021.
You can expect to see this change to your account by the end of this financial year.
Background
On 29 October 2021 a regulation was tabled in the NSW Parliament that increased the AEC contribution rate to 1.0%, an increase of 0.5% from the previous rate. This increase was made following an increase of 0.5% in the Superannuation Guarantee (SG) rate - from 9.5% to 10% - from 1 July 2021.
What is the SANCS Additional Employer Contributions (AEC) Account?
As a member of the State Authorities Superannuation Scheme (SASS), State Superannuation Scheme (SSS) or the Police Superannuation Scheme (PSS), you may also be entitled to receive additional employer contributions that will be paid into your SANCS AEC account. Unlike the defined benefit portion of the SANCS benefit (the basic benefit), the SANCS AEC account provides an accumulation style superannuation benefit, the value of which is determined by contributions made by your employer and investment earnings achieved by the Fund. You cannot make contributions to the SANCS AEC account, as only contributions made by your employer can be credited to the account.
The Additional Employer Contribution (AEC) account was first introduced for eligible members in 2013 following the increase of the Superannuation Guarantee from 9% to 9.25%, with the initial AEC rate 0.25% of a member’s salary. In 2014, the AEC rate was further increased by 0.25% to 0.5% following the SG increase from 9.25% to 9.5%. With the SG rate increasing by 0.5% to 10% from 1 July 2021 the AEC rate has now been increased by 0.5% to 1.0%.
Check back here at the State Super website where we will provide a further update once details are finalised in the coming months.