Coun­cil­lors vote to top up su­per

Western Suburbs Weekly - - Front Page - By JON BAS­SETT

MOSMAN Park coun­cil­lors ques­tioned giv­ing poorer-paid staff more to bol­ster their re­tire­ment se­cu­rity when a new su­per­an­nu­a­tion co­con­tri­bu­tions pol­icy was dis­cussed last month.

“I say it’s ab­so­lutely ir­re­spon­si­ble to vote for this when the costs are un­known,” Coun­cil­lor Zenda John­son said.

Un­til now there has been no pol­icy lay­ing out how much ex­tra is added to staff mem­ber’s con­tri­bu­tion to their su­per­an­nu­a­tion, af­ter sim­i­lar poli­cies were de­ferred by pre­vi­ous coun­cils in 2007 and 2016.

A pol­icy adding more to re­tire­ment sav­ings is re­garded as a nec­es­sary way of main­tain­ing and hir­ing new staff at coun­cils.

Neigh­bour­ing Cottes­loe, Clare­mont and Pep­per­mint Grove coun­cils all make ex­tra pay­ments if their staff choose to take more than the re­quired amount from their salaries and put it in su­per­an­nu­a­tion.

At Mosman Park, staff get a base 9.5 per cent con­tri­bu­tion to their su­per from the coun­cil.

It was pro­posed an ad­di­tional con­tri­bu­tion of 0.5 per cent ap­ply if the staff mem­ber added an­other 1 per cent of their salary, ris­ing to 2 per cent if they chose 4 per cent.

“The cur­rent co-con­tri­bu­tion rate dis­cour­ages those em­ploy­ees on a lower salary to vol­un­tar­ily con­trib­ute and there­fore those em­ploy­ees do not re­ceive any su­per­an­nu­a­tion co­con­tri­bu­tion ben­e­fit,” a re­port said.

It said the fi­nan­cial im­pli­ca­tions of the pro­posed pol­icy were un­cer­tain and its im­pact would be based on how many em­ploy­ees took up any of­fer.

Cr John­son said the pol­icy would be “an un­lim­ited cheque­book” when the coun­cil was ex­er­cis­ing fi­nan­cial aus­ter­ity.

She said it could cost up to $30,000 and it had to be in 2018-19 bud­get talks.

Cr An­drew Baird said he was hes­i­tant to have the old prac­tice and the new pol­icy con-cur­rently op­er­at­ing.

The pol­icy was agreed, de­spite Crs John­son, Baird and Jenna Ledger­wood vot­ing against it.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.