Superannuation Salary issue
Frequently asked questions
If you recently received a letter from us regarding an issue with your Superannuation Salary, here are a few frequently asked questions to help you learn more about the issue and what you may need to do.
If you have underpaid compulsory member contributions
If you have overpaid compulsory member contributions
How your benefit has been impacted
For members in Division 3 and members in Division 2 who have a minimum guaranteed benefit from an Australian Airlines plan
The correction to your benefit will be individual to you, as it depends on your past periods of part-time working and your job type.
The calculation of the defined benefit component of your benefit includes your Final Average Salary and Credited Service. The corrections to your Superannuation Salaries and working status will have impacted one or both of these:
- Credited Service, which is your total period of service allowing for any part-time periods.
- Final Average Salary, which is defined according to your division in Qantas Super, but typically references the highest average annual Superannuation Salary over three consecutive years, within the last 10 years.
This means any changes to your Credited Service as a result of corrections to your working status will impact the calculation of the defined benefit component of your benefit and will continue to do so in the future.
In contrast, any changes to your Superannuation Salaries will only flow through to your Final Average Salary calculation if it results in an increase to this amount. Also, as only the last 10 years of Superannuation Salaries are used in the calculation, it is possible, depending on which Superannuation Salaries have been corrected and when your final calculation from Qantas Super is made, that the correct Superannuation Salaries are no longer included in the Final Average Salary amount.
Here is a simplified example to show how the impacts to Credited Service and Final Average Salary work.
Chris joined Qantas Super on 1 July 2002 and has worked full-time, apart from 2018/19 when Chris worked part-time hours, equivalent to a 0.7 of full-time hours. Chris’ salary and work status history has been corrected as below:
| Period | Incorrect work status | Corrected work status | Incorrect Full-Time Equivalent Superannuation Salary | Corrected Full-Time Equivalent Superannuation Salary |
|---|---|---|---|---|
| 1 July 2018 - 30 June 2019 | 0.6 | 0.7 | $110,000 | $85,000 |
Chris’ full Superannuation Salary history for the last 10 years is below, noting the Salaries have been corrected by the employer since October 2021:
| Period | Incorrect Full-Time Equivalent Superannuation Salary | Corrected Full-Time Equivalent Superannuation Salary |
|---|---|---|
| 2012/13 | $75,000 | $75,000 |
| 2013/14 | $78,000 | $78,000 |
| 2014/15 | $80,000 | $80,000 |
| 2015/16 | $80,000 | $80,000 |
| 2016/17 | $82,000 | $82,000 |
| 2017/18 | $82,500 | $82,500 |
| 2018/19 | $110,000 | $85,000 |
| 2019/20 | $85,000 | $85,000 |
| 2020/21 | $87,000 | $87,000 |
| 2021/22 | $87,000 | $87,000 |
As at 30 June 2022, the Credited Service for Chris should be 9.7 years, i.e. 9 years full-time plus one year part-time status of 0.7. Previously the Credited Service was calculated as 9.6 years.
For Chris’ division, the Final Average Salary is the highest average annual Superannuation Salary over three consecutive years, within the last 10 years.
As at 30 June 2022, the correct Final Average Salary is $86,333 i.e. the average of the last 3 salaries as these are the highest. Before the correction, the Final Average Salary would have been $94,000 i.e. an average of the salaries from 1 July 2018 to 30 June 2021, as this gives the highest consecutive three salaries.
For Chris’ division, the benefit is calculated as 18% * Credited Service * Final Average Salary.
Therefore the benefit at 30 June 2022 was incorrectly calculated as 18% * 9.6 * 94,000 = $162,432.
The correct benefit at 30 June 2022 is 18% + 9.7 + 86,333 = $150,738.
Note that this is a simplified example to illustrate how the corrected salary and service fraction data might impact a member’s benefits from Qantas Super. The actual impacts will vary based on the corrected data received by Qantas for each individual and their division within Qantas Super.
We're here to help
If you have any questions about this issue or what you need to do next, you can get advice over the phone or face-to-face. It’s included as a part of your membership so there’s no extra cost.