Last week Western Australia’s Parliament passed significant amendments to the State Superannuation Act 2000, allowing greater flexibility for members of the Government Employees Superannuation Board (GESB). The changes enable public sector employees to continue contributing to their GESB super accounts even after leaving the public sector or taking on a second job in the private sector.
What the Changes Mean for Workers
Under previous WA laws, GESB, as a state-based public sector fund, could not accept non-public sector contributions. The approved amendments eliminate this restriction, allowing members to maintain their GESB accounts regardless of their employment status.
These changes align WA with the federal Your Future, Your Super reforms, ensuring superannuation accounts follow workers as they change jobs, reducing duplication and minimising fees.
It also removes the irony that government employees were precluded from participating in laws passed by the government to give workers greater flexibility and control in where their retirement savings were held.
Who Benefits?
GESB is the default superannuation provider for WA’s public sector, managing the retirement savings of approximately 250,000 current and former workers. Previously, members who left the public sector or held secondary private-sector jobs were forced to open accounts with other funds, creating duplication of some fees, but also the administrative hassle of tracking multiple accounts that may in some cases only hold small balances from pat time secondary jobs.
The changes apply only to existing GESB members. Those who close their accounts before the amendments come into effect will not be eligible to rejoin unless they return to public sector employment.
When Will the Changes Take Effect?
While the legislation has passed, the amendments will not come into effect immediately. The WA Government is yet to announce an implementation date, but GESB has assured members they will be notified when the changes are in place.
A Streamlined Super Future
These reforms mark a significant step forward for WA public sector employees, simplifying superannuation management and aligning state laws with national standards. In the event that their existing GESB account is still the most appropriate fund choice for them, members can now look forward to a simpler way to manage their retirement savings, no matter where their careers take them outside of the public service.
