2014-01-20 Ordinary Meeting Agenda

ORDINARY MEETING AGENDA                                                       20 JANUARY 2014


6.2    COUNCILLOR SUPERANNUATION

DOCUMENT INFORMATION

File No           ECM/Subject/Superannuation & Subject/Council Liaison

Author            Chief of Staff, Executive Office



SUMMARY/PURPOSE

The purpose of this report is for Council to consider the payment of superannuation contributions
for Councillors.

BACKGROUND INFORMATION

The Queensland Local Government Act 2009 (the Act) provides for a local government to make
contributions to a superannuation scheme for its Councillors. As Councillors are not generally
considered employees for taxation and superannuation purposes, Council is not obliged to pay
superannuation contributions for Councillors and Councillors are not obliged to make
superannuation contributions. Council can however decide whether it will make contributions for
a Councillor at a maximum contribution rate of 12% (section 226).

PREVIOUS COUNCIL CONSIDERATION

Nil.

REPORT

In accordance with section 226 (1) (b) of the Act, Council may take part in a superannuation
scheme for its Councillors and make payments from its operating fund to the superannuation
scheme as a contribution for its Councillors. The amount that a local government can contribute
is to be no more than the proportion of a salary that it is obliged to pay for its standard employees
i.e. 12%. Noosa Council employees currently contribute 6% of their salary and Noosa Council
contributes 12%.

This report recommends that council enter into arrangements with Councillors under which the
Councillor agrees to forego a percentage or amount of their Councillor remuneration with the
following arrangements:

      Councillors contribute an amount from their salaries towards a superannuation payment
       which is proportionate to the amount to be made by council with the maximum contribution
       to be made by Council being 12%. For example if a Councillor contributes 6% then Council
       would contribute 12 % or if a Councillor contributes 3% then Council would contribute 6%;
      Contributions are made through salary sacrifice arrangements under Section 226 of the Act
       by way of a formal request to council;
      Councillors nominate the preferred superannuation fund and where no nomination occurs
       the superannuation payments are made to LG Super;
      Council agrees to contribute the percentage or amount to the superannuation scheme for
       the Councillor.




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