NORTHERN TERRITORY TREASURY NORTHERN TERRITORY SUPERANNUATION OFFICE Northern Territory Government Death & Invalidity Scheme

Topics  What is NTGDIS?  Why was it introduced?  Who is eligible?  How the benefits are determined  Medical declarations  Invalidity retirement  Responsibilities

What is NTGDIS?  Free Northern Territory Government Death and Invalidity Scheme.  Administered by the NT Superannuation Office.  Applies to all eligible Public Sector employees who commenced after 9 August  Payable to eligible employees/dependants upon invalidity retirement or death.

Why was it introduced?  To provide equality for all NT Public Sector employees regardless of their superannuation arrangements.  NTGPASS members already have this level of cover however this scheme was closed to new members in  The NTPS certified agreement of 21 January 2005 provided for its implementation.  The Scheme commenced 1 July 2007 with transitional arrangements for employees who commenced before this date.

Who is Eligible? Permanent employees who are not members of CSS or NTGPASS and are under 60 years of age. Temporary and Contract employees who have at least 6 months continuous employment. Casual employees are not eligible. A benefit is payable if the employee is retired on the grounds of invalidity, or dies leaving dependants while employed by the NT Government.

How the benefit is calculated NTGDIS benefit is determined by age and salary, and calculated using the formula 17.5% x years of prospective service to age 65 x final salary. Contract Executives - Benefit calculated using ‘superannuation salary’, i.e. 65% of total salary package. Parliamentarians - Calculated on the basic backbencher salary plus the salary for any additional office held at the time of death or invalidity.

Benefit Offsets and Reductions Benefits are not paid: After ceasing employment with the NT Public Sector. If the employee dies without any dependants. After reaching age 60. Benefits are reduced: After age 50. By any worker’s compensation payments or Hopkins agreements. If a pre-existing medical condition (RBC) causes death or invalidity within the first 10 years of cover.

Medical Declarations Must be completed by eligible new employees. All medical declarations are assessed by the NT Medical Advisor to determine if there is a pre-existing medical condition. An employee may be directed to attend a medical examination. The employee is considered to be on duty whilst at the medical examination.

What is an RBC? An RBC is a Reduced Benefit Classification Certificate. Issued where an employee is assessed as having a medical condition which poses a significant risk of invalidity retirement or death within the first 10 years of employment. If an employee does not complete a medical declaration, they will be issued with a blanket RBC. Where an employee dies or retires on invalidity grounds during the first 10 years of employment and the retirement/death is due to a condition specified in the RBC, any benefit will be reduced.

Invalidity Retirement If the agency believes an employee should be retired on the grounds of invalidity – which is defined in the Superannuation Act as: “…. physically or mentally so incapacitated that the member is (or was) unfit for any available employment (on a full-time or part-time basis) for which the member is reasonably qualified by education, training or experience.” then the agency will need to have the employee medically assessed using the same process that is used for NTGPASS or CSS members.

Agency Responsibility Ensure new employees are aware of NTGDIS. If the Medical Adviser has requested an employee attend a medical examination the agency is responsible for paying the invoice/account. Ensure invoices for medicals are paid in accordance with agency standards.

NT Super Office Responsibility Administer NTGDIS. Follow up missing/incomplete medical declarations. Provide information to employees. Issue RBC’s. Process NTGDIS benefits.

Questions?