Superannuation Splitting - Commonwealth Superannuation Scheme
- Arnold Shields
- Nov 6, 2009
- 3 min read
Updated: Jun 24
This article is the first in a series examining common defined benefit superannuation schemes and how they are treated under Family Law when a relationship breaks down. We begin with the Commonwealth Superannuation Scheme (CSS), one of the most complex and long-standing schemes in Australia.
Background to the Commonwealth Superannuation Scheme
The CSS was established in 1976 for employees of the Australian Public Service and participating government agencies. The scheme closed to new members in 1990, but many long-term employees and retirees still hold entitlements under the CSS.
Structure of CSS Retirement Benefits
The CSS is a defined benefit superannuation scheme, meaning the retirement benefit is determined by a formula rather than investment performance. Benefits typically consist of:
Member Component: This includes member contributions plus accumulated interest.
Employer Component: Divided into two key parts:
Indexed Pension Benefit: This is based on:
Final salary
Length of contributory service
Prospective service (to age of retirement)
Age at retirement or exit
This indexed pension is the primary benefit for most CSS members.
Productivity Component: Also known as the superannuation productivity benefit, it includes employer contributions and interest. This is usually payable as a non-indexed pension or may be available as a lump sum in limited circumstances.
Family Law and Superannuation Splitting
The Family Law Act 1975 allows superannuation to be treated as property and split between parties following a separation or divorce.
Alternate Methods of Valuation
In May 2004, alternate valuation methods were approved for the CSS, as set out in the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2003.
Important:CSS trustees do not provide a valuation themselves. Instead, it’s necessary to obtain a valuation using family law information supplied by the trustee. This includes:
Application via Form 6 (available on the CSS website)
A $150 fee per calculation date
The CSS website also provides:
Sample court orders
Information guides
Frequently asked questions
Treatment of Non-Member Spouse Entitlements
In family law proceedings, the non-member spouse’s interest in the CSS cannot be rolled over or transferred to another fund.
Instead:
It is classified as an associate interest
It remains within the CSS until the condition of release is met
Payments are subject to CSS rules and cannot be accessed early
Additional Resources
CSS Website: www.comsuper.gov.au
Information Guide: CSS Family Law Booklet (PDF)
Valuation Instrument: Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2003 – Volume 1
Need Help Valuing CSS in a Family Law Matter?
At Dolman Bateman, we specialise in superannuation valuations for family law settlements, including complex defined benefit schemes like CSS. Our forensic team understands the intricacies of these funds and delivers valuations that are clear, accurate and legally compliant.
📞 Contact us today for a confidential consultations and Factors for Valuing Particular Superannuation Interests) Approval 2003 Volume 1
Disclaimer:
The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.
