Using Tier-Based Calculations
Tier-based calculation is typically used in the Australian public service and all participating commonwealth agencies. In this calculation, contributions are based on the employee's salary range and may be a flat amount or a percentage as illustrated in the following table:
|
Annual Salary |
Annual Amount |
Annual % |
|---|---|---|
|
0.00 - 40,040.00 |
1,201.20 |
|
|
40,041.00 - 64,514.58 |
An amount |
3% of superannuation salary |
|
64,514.59 - 96,772.00 |
1,935.44 |
|
|
> 96,772.00 |
|
2% of superannuation salary |
A user-maintained bracket, SUP BR TIERBSD TBL, stores these values. You can store both an amount and a percentage per range, as illustrated by the second row.
The system uses the annualized super salary (rate code AU SUPERSAL × system element RC FREQ FACTOR) to retrieve the flat amount or percentage to be applied. It then deannualizes the retrieved flat amount to the period frequency. The percentage, however, is applied to the period super salary, not the annualized period salary.
Although annualization and deannualization are normally automatic in the system, for this instance, the process is manual. The frequencies used for this process are stored at the pay group level.