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AN120149 – Commercial Travellers, &C., (State) Award

49. SUPERANNUATION

 
Note: The Superannuation Legislation Amendment (Choice of Superannuation Funds) Act 2005 provides that individual employees generally have the opportunity to choose their own superannuation funds. For further information see the AIRC guidance note — Choice of Superannuation Funds and Award Provisions.
 

(1) DEFINITIONS:

(a) "Eligible Employee" means an employee employed who has completed 152 ordinary hours service with the employer.

(b) "Employer" means an employer of an eligible employee.

(c) "L.U.C.R.F." means The Labor Union Co-Operative Retirement Fund.

(d) "Approved Fund" means a superannuation scheme approved in accordance with the Commonwealth Operational Standards for Occupational Superannuation Funds.

(e) "Ordinary Earnings" means the employee's award rate of pay including any overaward and/or shift loadings.

(2) CONTRIBUTIONS:

(a) The employer shall make a superannuation contribution to L.U.C.R.F. or an approved fund (as determined by sub-clauses (5) and (7) of this clause) of an amount equal to 3 per cent of ordinary earnings on behalf of each eligible employee. Payments shall be made in accordance with the fund.

(b) The employer shall not be required to make contributions for any period in which an eligible employee is absent on unpaid leave.

(c) Eligible employees may make contributions in addition to those paid by the employer and may authorise the employer to pay such contributions into the fund directly from the employee's wage.

(d) Eligible employees in addition to contributions under paragraph (a) of this sub-clause shall be entitled to a once only contribution by an employer to either L.U.C.R.F. or an approved fund in respect of the qualifying period. Such contribution shall be equivalent to contributions under the said paragraph (a) of this sub-clause.

(e) The obligation of the employer to contribute to the fund in respect of an eligible employee shall cease on the last day of such employee's employment with the employer.

(3) FAILURE OF AN EMPLOYER TO PARTICIPATE IN A FUND - Where an employer has failed to make application to participate in a fund, the employer shall make such application and, upon acceptance by the Trustee, shall make an initial contribution to the fund, in respect of each eligible employee, equivalent to the contributions which would have been payable in accordance with sub-clause (2) above, had the employer made application to participate in the fund and been accepted by the Trustee prior to the implementation of this award. The eligible employee shall not be entitled to:

(a) interest on contributions; and/or

(b) death and disability cover,

until such time as the employer becomes a member of such fund, that is the date of acceptance by the Trustees.

(4) REFUSAL OF EMPLOYEE TO PARTICIPATE IN A FUND - An employer shall not be liable to contribute on behalf of any eligible employee who refuses to sign any application form as required by the Trust Deed of the fund. Such refusal shall be in writing, notwithstanding that the employee can at any time apply to have contributions commencing upon becoming a member of the fund. Provided further that where an eligible employee is a member of the Union, the Union shall be notified of the employee's refusal.

(5) EXISTING ARRANGEMENTS - Employers already provided 3 per cent Occupational Superannuation contributions or providing improved superannuation benefits equivalent to 3 per cent on behalf of their employees employed as Commercial Travellers to an approved fund operating on or before 15 January 1990, or employees employed as Wholesale Merchandisers to an approved fund operating on or before 1 August 1990, shall be exempt from the application of this clause.

Further, it is not the intent of this clause to reduce the terms of any existing agreement between an employer and the Trustee of an approved fund. Provided that the benefits of existing arrangements would not be any less favourable than benefits derived as a result of the application of this award.

Further, the Union reserves its right to inspect these arrangements periodically.

(6) FUNDS -

An individual employer, other than an employer covered by sub-clause (5) who wishes to make an application for an alternative to the requirement to pay contributions to L.U.C.R.F. pursuant to this clause is subject to the following:

(i) The employer shall notify the State Secretary of the Union in writing by registered mail.

(ii) The employer shall not proceed to make payments into an alternative fund until agreement to do so has been received by registered mail from the State secretary of the Union.

(iii) Where the parties are unable to reach agreement the matter shall be referred to the Industrial Committee for determination. If conciliation fails the Industrial Committee shall adjourn for a reasonable period to allow a representative from L.U.C.R.F. and from the proposed fund to interview eligible employees regarding superannuation.

(iv) Employees then may choose the fund to apply from those proposed by the employer or L.U.C.R.F. The principle of individual choice shall apply.

(Notation: Employees covered by this award are also covered by the provisions of the Superannuation Guarantee Charge Act, 1992 (Cth.) and the Superannuation Guarantee (Administration) Act, 1992 (Cth.) and complimentary legislation. Nothing in this notation, however, shall be used to reduce any benefits enjoyed by employees as at the date of making this award.)

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