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NSW cops fight unfair glitch hitting super, childcare rebate

Cops are being driven out of the force due to a flaw which artificially inflates police salaries affecting their retirement savings, childcare rebates and child support is driving cops out of the force, the union says.

Is this the world's slowest police chase?

A flaw which artificially inflates police salaries affecting their retirement savings, childcare rebates and child support payments is driving cops out of the force, according to the Police Association of NSW.

“Police are being penalised, quite severely in many instances, because of the way the system is set- up,” said Kevin Morton, the Association president.

A delegation from the Association and NSW Police Commissioner Karen Webb will travel to Canberra on Tuesday to lobby the government about the need to change the legislation they say is penalising cops unfairly.

For the past 15 years officers contribute 1.8% of their salary to a compulsory Death and Disability Insurance scheme which the state government also supplements but is counted towards their superannuation and earnings.

“The police officers themselves are not seeing this money at all. It’s phantom money. Their true earnings state they should be able to access these basic entitlements like everyone else, but the way the system is set up means they’re not only missing out on support, but they’re also often getting stung with bills for breaching the concessional cap,‘’ he said.

NSW Police are being dudded by a salary scheme, the union claims. Picture: Gaye Gerard
NSW Police are being dudded by a salary scheme, the union claims. Picture: Gaye Gerard

Mr Morton said the money goes into their accounts but is immediately taken out by the administrators of the insurance scheme, effectively washing it through.

When introduced the payments had no effect on officers super benefits because their wages were so much lower.

“”It is time to fix this problem, and the Federal Government could do this in a heartbeat,‘’ Mr Morton said.

It is particularly affecting female officers with child care arrangements and comes at a time when NSW police are struggling to recruit young people to the force.

“This is a glitch in the system that successive governments have known about and promised to fix but never have.

“We’ve got cops whose childcare rebate has been slashed to the point care is basically unaffordable, whose child support payments have been slashed, and whose out-of-pocket expenses for medication and disability support for their children are skyrocketing as a result of the problem,‘’ he said.

The glitch could be driving police out of the profession, the union claims. Picture: Gaye Gerard
The glitch could be driving police out of the profession, the union claims. Picture: Gaye Gerard

Mr Morton said says both state and federal governments have a role to play in fixing the mess.

“At a time when police recruitment and retention is under the spotlight, we’ve got to fix basic issues like this that have a measurable and hugely detrimental impact on people’s everyday lives.

“Everyone in Australia should be able to able to access the support they deserve and make contributions to their retirement savings up to the amount of the concessional cap. NSW police officers are the only people in Australia prevented from doing so, and it is through no fault of their own.”

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Original URL: https://www.dailytelegraph.com.au/news/nsw/police-union-commissioner-plead-canberra-for-scheme-change/news-story/3cef5bbea7e60b8658cfce42bacb3cc9