The PSSdb scheme is different to most super funds and can be a bit more difficult to understand, but it also carries some unique benefits. If you’re a PSS member, you should be aware that if you leave the fund, you cannot rejoin as it is closed to new members. One unique benefit in the PSS that most super funds don’t offer is a lifetime pension option. If you’re thinking about making changes to your PSS, speak to one of our advisers first to ensure you’re making a well-informed decision.

Your PSS benefit is calculated using the formula:

Final Average Salary x Accrued Benefit Multiple = Your benefit

In general, your final average salary is an average of your superannuation salary over 3 years. These values are updated at your birthday each year. Your accrued benefit multiple increases over time, based on your work hours. The default rate of accrual is 11% per annum.

Your actual benefit calculation can vary depending on a number of other factors.

Because your super benefit is calculation based on your super salary and accrued benefit multiple, increasing the value of these figures will help to increase your PSS benefit. Your super salary can be increased with pay rises and allowances and your accrued benefit multiple can be increased by making higher member contributions, up to the maximum of 10%. We help our clients manage their cash flow so they can afford to maximize their contributions to super while still being able to meet their day-to-day expenses.

No, your final average salary is always calculated on a pro rata basis. If you go part-time, the full-time salary equivalent will be used for the calculation.

This is one of the most important questions facing PSS members reaching retirement, and once you make a decision, it cannot be reversed. There are pros and cons to both options; a pension provides guaranteed income indexed with CPI, which provides great income security, but it means foregoing access to your funds, and there will be tax, Centrelink and estate planning considerations as well. There is no simple answer for which option is better; but we can help you find the solution that best suits your needs.

When you claim on your benefit, you’ll have the option to convert all or part of it to a lifetime pension. The rate of pension payment is a fraction of the purchase price, depending on your age. For example, if you were to claim a pension at age 60, you would divide your benefit amount by 11 to determine your annual pension amount. The dividing number decreases with age, so the later you claim, the larger the annual pension amount.

All or part of your PSS pension may be included in your taxable income and can incur income tax. However, there are strategies that can reduce the tax you pay; our ongoing service model allows us to minimise your tax payable year on year, which can add up to thousands of dollars across your lifetime.

If you’ve commenced a PSS pension, a portion will continue to be paid to your surviving spouse if you pass away. The same may also be true if you have dependent children, however you cannot nominate others to be beneficiaries to your pension instead. As part of an effective retirement plan, we consider the needs of you and your family, and help decide how to claim your benefit to ensure you keep your loved ones secure.