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Gold, incentives and meh

What is happening to superannuation?

Can anyone shed light on the situation that appears to be arising concerning superannuation for GP principals? As nominal PCT employees for pension purposes, we have historically paid our employee share (6 per cent) while they have paid the employer share (previously 7 per cent, soon to be 14 per cent).

However, section 22.4 of the statement of financial entitlements indicates the employer's component will be included in the national calculations for payments made to us under the new contract.

To my knowledge this has never been mentioned in the publicity concerning the contract and reduces the real value of all payments by 14 per cent.

Furthermore, can anyone explain how we can agree to a global sum that includes these amounts when the exact figures for superannuation cannot be known until our profits are declared at the end of the first year of the new contract? If the exact figure for the 14 per cent employer contribution is not paid to us we could end up paying some of it out of our own pockets.

That cannot be just, yet I cannot find any provision in the contract or the statement of financial entitlements for a retrospective adjustment of the global sum. We must urgently wake up to this bizarre anomaly ­ surely we cannot agree to pay the employer part of our superannuation contributions!

Dr PD Kelly


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