Superannuation (Productivity Benefit) Act 1988

Superannuation (Productivity Benefit) Act 1988

What is this?

This Act created a government-funded superannuation (retirement savings) top-up benefit for eligible Commonwealth (federal government) employees. Think of it as the government putting extra money into your retirement savings on top of your regular super contributions — a "productivity benefit" tied to your salary.

Who does it affect?

It covered Commonwealth public servants and employees of approved government bodies who weren't already in certain other super schemes. It specifically excluded Defence Force members, judges, federal MPs, and employees hired to work overseas only.

Is it still relevant?

Largely no — it is a closed, legacy scheme. Two key cutoffs:

• From 1 July 2005: Employees who left the Public Sector Superannuation Accumulation Plan (PSSAP) and chose a different fund lost coverage.
• From 1 July 2006: No new people could join the scheme at all. Anyone who would have become eligible after that date simply isn't covered.

So this Act now mainly matters to people who were eligible employees before 1 July 2006 and may have accumulated entitlements under it.

How did the benefit work?

• The government (through your employer) calculated a benefit amount based on a formula using your (tied to 10-year government bond rates).