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January 18, 1999
Pension entitlements with mergers and amaigamations municipal superannuation plan
Mergers and amalgamations have an impact on pension entitlements:
- An employee may contribute to Superannuation while working for a number of different employers. In the case of a member working for two or more employers, the member actually earns pensionable years of service attributable to two or more separate pensions
- If the employers merge and become one employer, the member cannot contribute more than the equivalent of pensionable service for a full time position. Therefore, members with full time positions working part-time or casual at other worksites under the same employer will have their contributions stopped in their part-time/casual worksites.
Members working part-time and casual at a number of worksites will have their contributions limited to the equivalent of full time hours.
- If the employer has continued to pay pension contributions above full time hours after a merger for more than one full calendar year, a refund will come from the Pension Commission, with interest, for those years.
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For part of the current calendar year of contributions, the refund will come from the employer and the employer deducts the amount from the amount they usually send to the Superannuation Commission. The Superannuation Commission does not apply interest to this part of the monies owed to you and therefore the employer is not expected to pay interest for this amount."
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