PSS contributing Member Statement Guide 2017-18 - Commonwealth ...
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2017—18 PSS contributing Member Statement Guide Find out how your super benefit is calculated and how you can make PSS work for you
Your PSS contributing member statement Financial year 2017—18 Use the following guide to help you navigate the different sections of your member statement. * Important The information in this Member Statement Guide (MSG) is general information only and has been prepared without taking into account your personal objectives, financial situation or needs. You should consider any advice in this MSG in light of your personal objectives, financial situation and needs before acting on it. You may wish to contact a licensed financial planner to do this. You should obtain a PSS Product Disclosure Statement (PDS) and consider its contents before making any decisions. This document is part of your periodic statement for your PSS account and was prepared on 28 July 2018 by Commonwealth Superannuation Corporation (CSC) ABN: 48 882 817 243 AFSL: 238069 RSEL: L0001397, Trustee of PSS ABN: 74 172 177 893 RSE: R1004595. The other components of your periodic statement are the welcome letter, member statement and transaction summary. The 2017–18 Annual Report will be available online at csc.gov.au in the last quarter of the calendar year. Your benefit entitlements disclosed in your periodic statement (including your death and invalidity benefits) reflect your situation as at 30 June 2018. The benefits shown are based on your current records and may be subject to change should any of the details on which the information is based alter. You should seek a benefit estimate from PSS prior to withdrawing any part of your benefit. We are required to provide you with any additional information you may reasonably need to understand your investment in PSS, including any benefit entitlements (such as your death and invalidity benefits). Further information in relation to an interest in PSS (including details of contribution levels and insurance cover that may be available to you) is also available on request from CSC. To access or request this information, please contact us as set out in the contact us section of this MSG.
Your personal details at 30 June 2018 1 to Name Contents Limited Benefits Member (LBM) Reference number You are considered an LBM if you: • Your personal details salarycompleted a Confidential Medical and Personal •Yourhave supernot • Your benefit accrual • Your benefit summary Statement Your (CMAPS) form contribution rate • Your rate of allotment of net earnings or Membership commenced • Your investment option performance • did complete a CMAPS form, and we assessed you as an A Employment status M • Your benefit details LBM because you have a pre-existing medical condition M • Your benefit options that Your hourswe per believe fortnight may cause you to take excessive sick gi a • Your invalidity benefit leave in the first three years of membership. Limited Benefits Member (LBM) an • Your death benefit un Tax Tax FileFile NumberNumber supplied Your PSS supplied yo • Your insurance details m • Your surcharge debt IfEmail youaddress have not supplied your Tax File Number (TFN), • Your transaction summary any concessional contributions received may be taxed at member statement Mobile number • Other important information the highest marginal tax rate. Please check your member details, and contact your personnel section if they are incorrect. Your personal details Your personal details at 30 June 2018 Your benefit accrual Your1benefit accrual July 2017 to 30 June 2018 Balance at Balance at D Name 1 July 2017 1 July 2018 Yo de Reference number Final Average Salary (FAS) yo Your super salary Accrued Benefit Multiple (ABM) Your contribution rate Your total benefit accrual Membership commenced Final Average Salary (FAS) Are you registered for Employment status Your FAS is based csc.gov.au Member Serviceson your average superannuation salary, which Online? is calculated using Online Member Services your superannuation salary on each of your Make super Your hours per fortnight gives you last three ready access birthdays to recognised for superannuation purposes. a range of information work for you Yourand superannuation tools to help you salary includes basic salary and $ Limited Benefits Member (LBM) understand and manage Tax File Number supplied allowances recognised for superannuation purposes. your super. To find out Get financial advice you can trust. more visit csc.gov.au Email address Accrued Benefit Multiple (ABM) CSC’s authorised financial planners provide a financial advice service that can assist you in reaching your financial Mobile number Your benefit accrual is calculated using your ABM. Your ABM is goals. It is ‘fee for service’ advice, which means you receive a fixed quote upfront. There are no obligations, worked out based upon the length of your PSS membership commissions or hidden fees. For more information about Please check your personal details carefully and contact Please check your member details, and contact your personnel section if they are incorrect. this service, or to arrange an initial appointment please and the rate of member contributions, expressed as a percentage call 1300 277 777 during business hours or your personnel Your section if they are incorrect. benefit accrual 1 visit csc.gov.au/advice Balance at Balance at Did you know...? Your defined benefit is
of your salary you pay each fortnight. The higher your member Early Release Deduction contribution percentage rate and the longer you contribute, the higher your ABM. For more information refer to csc.gov.au Amount (ERDA) payments If you have received an ERDA payment, the amounts Your total benefit accrual disclosed in your member statement as your total equity This amount is calculated by multiplying your FAS by your at 1 July 2017 and 30 June 2018 have been reduced by the ABM. If you have reached your Member Benefit Limit (MBL), amount of your ERDA. your final benefit is capped to a maximum. For more All future benefit options will be reduced by your ERDA information refer to csc.gov.au including invalidity and death benefits. Your total benefit at 1 July 2017 Your benefit summary Benefit summary This is your total benefit at 1 July 2017. Your total benefit at 1 July 2017 Member contributions You can view details of the PLUS contributions or amounts – 1 July 2017 – 30 June 2018 This amounts shows your that arepersonal attributed contributions paid into your directly to your account in Member contributions account between Summary your Transaction 1 July 2017 and 30 June 2018. You can Productivity contributions choose to ofmake as part no contributions, or to pay member this statement, (less 15% tax) or at any timebetween contributions using the 2 and 10%. Please note: there are Member Services Online Co-contributions limitations onSummary Transaction the contributions page. you can make to your super. This is a combination Low Income Contribution Productivity contributions (less 15% tax) of any Low Income Transfers in This shows the amount that your employer contributed each Superannuation Contributions and Superannuation fortnight (less any Low 15% contributions tax) between 1 July 2017 Income Guarantee contributions and 30 June 2018.Tax Offset. Superannuation Net earnings ADD employer – 1 July 2017 – 30 June 2018 Co-contributions This shows any Australian Taxation Office (ATO) super This amount is financed Employer component accrual co-contributions by your employermade and to your PSS account between LESS 1 Julyaccrues 2017based and on30several June 2018. factors, including your FAS, If youyour made personal contribution contributions to your super in 2017–18, rate and and are eligible length to receive a co-contribution payment to of membership. PSS, it will not be made until after 30 June 2018. This will not be shown here because you need to lodge your 2017–18 Your total benefit at 30 June 2018 income tax return before the ATO can assess your eligibility. 2
Low Income Contribution rate and length of membership. Your employer pays the This is a combination of any Low Income Superannuation difference between your total benefit accrual, and the total Contributions and any Low Income Superannuation Tax Offset. of your member and productivity components. If you made personal contributions to your super in 2017–18, Less and are eligible to receive a Low Income Contribution payment This shows the amount of withdrawals during the reporting to PSS, it will not be made until after 30 June 2018. This will period, including amounts if you were subject to a family not be shown here because you need to lodge your 2017–18 law split from your PSS membership from 1 July 2017 to income tax return before the ATO can assess your eligibility. 30 June 2018. These amounts will also be shown on your transaction summary. Transfers in This shows any amounts you have transferred from other Your total benefit at 30 June 2018 super funds. When you stop working and take your PSS This is your total benefit at 30 June 2018. It includes your benefit, any transfer amounts will be paid to you as a member, productivity, co-contributions, Low Income lump sum. Contribution, transfers in, SG contributions and net earnings less any withdrawals, between 1 July 2017 and 30 June 2018. Superannuation Guarantee contributions This shows any ATO contributions made to your PSS account Keep in mind that this amount may differ from your total between 1 July 2017 and 30 June 2018. benefit accrual (FAS x ABM). Your total benefit accrual does not include super co-contributions, Low Income Net earnings Contribution, transfers in, SG contributions and net earnings This is the sum of your total net earnings (positive or on those amounts. There may also be a difference due to negative) on your member, productivity, co-contributions, under or overpaid member contributions and net earnings. Low Income Contribution, transfers in and Superannuation Guarantee (SG) contributions, between 1 July 2017 and * If your benefit is subject to a family law split within 30 June 2018. this financial year, you will notice the LESS column displays the reduction amounts at the date of your split, An earning rate for the default fund option is determined by known as operative time. This is due to your family law us for every business day. These rates are used to calculate court order or superannuation agreement. entitlements for members exiting PSS. Also your transaction summary will show the reduction The earnings are allocated monthly on the basis of the rates amount of your benefit components at the operative determined for that month. time, in addition to your contributions made and any Employer component accrual variation in your investment option. This amount is financed by your employer and is based 3 on several factors, including your FAS, your contribution
Your rate of allotment The following details are based on the assumption you have not left the workforce. of Ratenet earnings of allotment of net earnings 1 July 2017 – 30 June 2018 If you are age 65 and older For an explanation on how Rate of allotment of net earnings As ofthe 1 March 2018 we rate of allotment have changed our arrangements of net The amount shown takes into account net earnings, your opening earningsinterest regarding is calculated onrefer benefits. If you cease your PSS Investment option performance to your MSG. balance and other changes to your account balance such as membership after your 65th birthday, the interest will cease contributions and transfers paid30into 1 year your to account 5 years to during 10 years to the to accrue three months after your date of exit. Option June 2018 30 June 2018 30 June 2018 reporting period. The net change to your opening account balance We are taking this approach because PSS’s governing isDefault averaged across the year in determining 9.3% 8.8% this percentage. 5.9% legislation, the Superannuation Act 1990, requires your Rate of allotment This long-term of not returns statement does net earnings reflect 1 July your personal returns 2017 credited to your–account. 30 June It reflects2018 long-term returns at the investment option level in which funded benefit components are invested. Your personal rate of return preserved benefit to be claimed at age 65. Your investment option is shown as the rate of allotment of net earnings above. Rate of allotment of net earnings For an explanation on how the rate of allotment of net Your preservation age Your benefit details at 30 June 2018 performance Rate of allotment Investment ofperformance option net earnings 1 July 2017 – 30 June 2018 Your preservation age earnings is calculated refer Superannuation to Didyour know...?law places restrictions on when you youMSG. Rate of allotment of net earnings 1 year to 5 years to 10 years to can For access If you aresuperannuation deemed on an explanation as retired how benefits, especially lump Option from the theofworkforce rate allotmentyou are of net Preserved benefit 30 June 2018 30 June 2018 30 June 2018 sums. One of able to claim earnings these restrictions your pension is calculated refer is called your preservation Investment Default option performance9.3% Restricted non-preserved benefit 8.8% 5.9% age,toonce and itMSG. youryou applies reach yourin addition to the other restrictions on minimum retirement withdrawing age your benefit. All returns in this table are calculated as the compound average This long-term returns statement does not reflect your personal Option Unrestricted returns non-preserved at the investment option level inbenefit 1 yearreturns to credited5toyears your account. to It reflects 10 yearslong-term to which funded benefit components are invested. Your personal rate of return (usually 55), regardless of 30 June 2018 30 June 2018 30 June 2018 age. not reached your preservation age rate of earnings after fees and taxes. The long-term performance is shown as the rate of allotment of net earnings above. Generally, if you have your preservation Accumulation Phase Value figures Your Default outlined benefit in the table details at 30are June the2018investment 9.3% options 8.8% as a 5.9% yourFor cash lump sum an explanation onis howrestricted the to your SIS upper limit and Accumulation Phase Value is whole, This Your SIS and long-term returnsare upper not statement limit your does personalised not reflect investment your personal returns returns. credited to your account. It reflects long-term the balance Did of your lump sum must remain preserved in you know...? calculated refer to your MSG. returns at the investment option level in which funded benefit components are invested. Your personal rate of return Your preservation age is shown as the rate of allotment of net earnings above. PSS,Ifor youinare some deemedcases can be rolled over. as retired Your benefit details Minimum amount on exit from the workforce you are Your benefit details at 30 June 2018 Preserved benefit able to claim your pension Preservation age Your benefit Restricted options non-preserved benefitat 30 June 2018 once you reach your Did you know...? Your preservation age minimum Date ofare If you retirement birth deemed age as retired Preservation age Preserve total Unrestricted benefit in PSSbenefit non-preserved (usually from the55), regardless workforce youofare Preserved benefit Before your If you able toJuly claim1960 preservation claim any age. yourpart of pension 55 OR Accumulation Phase Value your once For member anyou reachcomponent, explanation your on how the Restricted non-preserved benefit 1 July you1960 cannot minimum Accumulation –take 30aJune retirement Phase age 1961 pension Value is 56 Lump Your SISsum member upper limit now* on retirement. (usually calculated 55), regardless refer MSG. to your of Unrestricted non-preserved benefit 1 July 1961 – 30 your preservation age. June 1962 57 PLUS Minimum amount on exit Accumulation Phase Value 1 July 1962 For an – 30 June explanation on how1963 the 58 Preserve the balance in PSS Accumulation Phase Value is Your benefit Your SIS upper limitoptions at 30 June 2018 1 July 1963refer calculated – 30to June 1964 your MSG. 59 * Payment of your resignation lump sum will be limited to the amount of your member contributions and interest up to your SIS upper limit. The remainder will be preserved in PSS until you reach preservation age, or rolled over to Minimum Preserve another amount fund.total benefiton exit in PSS After 30 June 1964 60 4 If you claim any part of Your OR benefit options at 30 June 2018 your member component, you cannot take a pension
Preserved benefit and Your preserved benefit must remain preserved in the • notional employer component superannuation system until you: and • reach your preservation age and leave the • any transferred amounts, including any co-contributions, workforce permanently LISC, LISTO, or ATO SG. • change employers after reaching the age of 60 Any outstanding surcharge debt will be deducted from this • die value before it is reported to the ATO. More information • become totally and permanently incapacitated about APV or the total super balance can be found on • qualify for release on the ground of severe financial our website. hardship or specified grounds. Your SIS upper limit Restricted non-preserved benefit This is the maximum amount of any cash lump sum that This benefit can be paid when you stop working in Australian can be paid to you in accordance with the Superannuation Government employment, subject to PSS rules. In PSS this Industry (Supervision) Regulations 1994 (SIS) if you are not amount is limited to your SIS upper limit, and could be further permanently retiring from the workforce, or you have not restricted by your age and the benefit option you choose on reached your preservation age. Any cash lump sum paid to cessation of contributory membership. you may be further restricted by your age and the benefit option you exit under. Unrestricted non-preserved benefit This benefit can be paid to you at any time, subject to PSS Minimum amount on exit rules. In PSS, no benefits are payable until you stop working This is a guaranteed dollar amount payable regardless in Australian Government employment. This means your of Fund performance. This amount is contributions and unrestricted non-preserved benefit in PSS will always be nil earnings to 30 June 2003 plus contributions (not including while you are a contributing member. earnings) from 1 July 2003 to 30 June 2007. Accumulation Phase Value The Accumulation Phase Value (APV) is the total value of any superannuation benefits in the growth or accumulation phase, and counts towards your total super balance. CSC will report the APV for your PSS interest as the total of the following (as at 30 June 2018): • accumulated member contributions and • accumulated productivity contributions 5
Accumulation Phase Value is Your SIS upper limit calculated refer to your MSG. Minimum amount on exit Your benefit Your benefit options options at 30 June 2018 You can use the PSS i-Estimator to estimate your resignation benefit, and other benefit options at various dates. You will Preserve total benefit in PSS need to register for Member Services Online to get access. Registering is any If you claim easypartand of takes only a few minutes. Simply go OR your member component, to csc.gov.au you cannot take a pension Lump sum member now* on retirement. PLUS Retiring after minimum retirement age (over 55) Preserve the balance in PSS When you retire you have a range of different options: * Payment of your resignation lump sum will be limited to the amount of your member contributions and interest up The amounts shown reflect your benefit at 30 June 2018 to your SIS upper limit. The remainder will be preserved in PSS until you reach preservation age, or rolled over to 1. Preserve your entire benefit in PSS. This preserved another fund. and may change. You can use the PSS i-Estimator to benefit is payable when you permanently leave the estimate your retirement benefits, and other benefit workforce, or change employers after you turn 60. options at various dates. You can take your benefit as a lump sum, a CPI-indexed For more information about your retirement benefit pension, or a combination of both. options visit csc.gov.au or contact us on 1300 000 377. 2. Convert your entire benefit to a pension that is indexed twice a year in line with movements in the CPI. Resigning before minimum retirement age 3. Take all of your benefit as a lump sum, provided you have (under 55) reached your preservation age. If you resign, you can choose one of the following options, depending on your circumstances: 4. Convert at least 50% of your benefit into a CPI-indexed pension, and take the balance as a lump sum (subject to 1. Preserve your entire benefit in PSS. Generally you can preservation age rules). claim your benefit at age 55 if you have permanently left the workforce. However, if you have not reached your 5. Take part of your benefit as a lump sum and preserve the preservation age, restrictions will apply to the access of a balance in PSS (subject to preservation age rules). full lump sum. You can also claim your preserved benefit If you are under age 60 and have not permanently left the if you change employers after you reach the age of 60. workforce, your only options are 1 and 5, with the lump sum 2. Take your member component as a lump sum up to your payable under option 5 limited to your member component SIS upper limit and preserve the balance in PSS. Be aware up to your SIS upper limit. that if you claim any part of your member component, Also, if you are under age 60 and have not reached your you lose the option of taking a CPI-indexed pension when preservation age, any lump sum payable is limited to your you claim your preserved benefit. SIS upper limit. This is reflected on your statement. The amounts shown in this section reflect your benefit at 6 30 June 2018 and may change.
Your invalidity Your benefit benefit if you are retired on invalidity at 30 June 2018 The lump sum obtained from this calculation is then converted to an indexed pension. The pension conversion CPI-indexed pension (pa) factor used is 11.00, which is the one that would have The invalidity pension applied toprojected is your you if you age retired at the age of 60. In other words, PLUS yourretirement lump sum pension at is divided by 11.00 to obtain the amount of age 60. To learn how this is Lump sum indexed pension. calculated please refer to the OR MSG Please for more note: information. if you had been contributing at more than Lump sum (if LBM applies) 5% for less than three years before you commence sick leave for the final time, you may not be eligible for benefits The Yourinvalidity benefitatshown death benefit 2018member statement is on your 30 June calculated at the higher average rate. the default option provided by PSS that is payable to you if * Please note: the figures quoted in your statement are CPI-indexed pension (pa) you do not select an alternative benefit option. This is the Any pre-1996 transfer Your benefit indicative amounts ifofyou have theare been retired benefit youon invalidity may at 30 have been June 2018 entitled CPI-indexed PLUS pension plus lump sum. included in the invalidity to andifdeath CPI-indexedyou retired pension (pa) on invalidity grounds on 30 June 2018. Your Lump lump sum sum is a refund of your co-contributions, pension T These amounts displayed. Refer to theare subject to change in line with any i Low Income Contribution, transfers in, net earnings and PLUSMSG for more information. OR future changes to your salary, contributions or working r SG contributions. a Lumphours. If you are sumautomatically You get considering invalidity retirement, c IfLump yousum are(ifclassified LBM applies) as a LBM, your invalidity benefits are you should permanent contact invalidity or us to discuss your options and M OR restricted OR to a lump sum payment of the total benefit you death benefits at no extra obtain a benefit estimate. cost to you. have accrued at the date of your invalidity retirement. Lump sum payable to your estate Lump sum (if LBM applies) For more information about invalidity benefits visit csc.gov.au Insurance Your death Your death benefit benefit at 30 June 2018 or contact us on 1300 000 377. CPI-indexed pension (pa) A How is an invalidity benefit calculated? PLUS a The invalidity pension benefit payable on total and permanent i a incapacity is based on the lump sum you would have received Lump sum d if you had worked to the age of 60. Generally, for this purpose, OR M if you had been contributing at an average of more than 5% Lump sum (if LBM applies) Y of your salary, it is assumed you would have continued to p contribute at that higher rate through to the age of 60. The OR death benefit shown on your member statement is d c However, Surchargeifdebt you had been contributing at less than 5%, your information the benefit Lump that sum payable would to your estatehave been payable at 30 June 2018 benefit is worked out on the basis your contributions would if youDiddied while you were a contributing member, and your you know...? At 1 July 2017 have been immediately increased to 5%, and that you would Insurance only Ifdependant was an eligible spouse. The maximum you have a surcharge 7 have continued to contribute at that rate until the age of 60. Debt added debt, it can be paid in part or full during the period of Payments made your membership.
pension payable to your eligible spouse is a percentage of the invalidity pension you would have received if you had Your surcharge Surcharge debt debt information D At 1 July 2017 retired on invalidity grounds at 30 June 2018. I Debt added d The lump sum payable to your eligible spouse is a refund of o y your co-contributions, Low Income Contribution, transfers in, Payments made net earnings and SG contributions. The percentage of the Interest added pension is increased if you have one or more eligible children. At 30 June 2018 Your death benefit may be reduced by an adjustment to recover any accrued surcharge debt. The entries in this table show the surcharge total debt as at 1 July 2017 and 30 June 2018. Including any debt and interest If you are classified as a LBM, your death benefits are added, as well as payments made since 1 July 2017. If you restricted to a lump sum payment of the total benefit you have have a surcharge debt, you do not have to pay it now – it will accrued at the date of your death as a contributing member. be deducted from your PSS benefit when it’s paid to you. If you want to you can reduce your surcharge debt by making Lump sum payable to your estate payments. Interest calculated at the 10-year Treasury bond If you die before retirement and no spouse and/or children’s rate will be applied to any outstanding balance of your benefits are payable, a benefit comprising your member surcharge debt account as at 30 June each year. The 10-year contributions, net earnings, and the minimum employer Treasury bond rate for 2017–18 financial year is 2.63%. benefit payable under the superannuation guarantee legislation, is to be paid to your estate. If you have any questions about your surcharge assessment, please contact the ATO on 13 10 20. For more information, refer to our website csc.gov.au or contact us on 1300 000 377. Your transaction summary Your transaction summary will show the reduction amount Your insurance details of your benefit components at the operative time, in addition This shows your Additional Death and Invalidity Cover (ADIC), to your contributions made. Transactions shown on your if any, up to 30 June 2018. Some members may have the account between 1 July 2017 and 30 June 2018 include: option of increasing their ADIC. Your employer will pay half the • any payments (including member and productivity costs of the standard premium for the additional insurance. contributions, transfer amounts and co-contributions) that were made to your account * For more information about ADIC, refer to our PSS PDS • monthly net earnings allocated to your account and the Death and invalidity benefits booklet at • contributions tax deducted from your account csc.gov.au or contact us on 1300 000 377. • member ADIC premiums • activity fees 8 • any withdrawal including a family law reduction or ERDA.
If you are still not satisfied Contact us If you are dissatisfied with our final response or if we If you need further information about your super, you can cannot resolve your situation within 90 days, you can lodge get yourself off to a good start by visiting csc.gov.au where a complaint with the Superannuation Complaints Tribunal you will have easy access to: (prior to 1 November 2018) or the Australian Financial • our PSS PDS Complaints Authority (from 1 November 2018). • a glossary of terms The Superannuation Complaints Tribunal and the Australian • forms and publications Financial Complaints Authority are independent dispute • news and information resolution bodies set up by the Australian Government to • free super seminars (including dates, locations and resolve superannuation complaints. booking facility) • webinars (from the convenience of your home or For information about the Superannuation Complaints work computer) Tribunal visit sct.gov.au and for information about the • Member Services Online where, with a secure Access Australian Financial Complaints Authority visit afc.org.au Number, you can: You can contact the Superannuation Complaints Tribunal in • view and print your member statement one of the following ways: • project your final PSS benefit using i-Estimator Email: firstname.lastname@example.org • view and update your contact details Phone: 1300 884 114 • review and update your investment options Fax: 03 8635 5588 • contribute or make surcharge debt payments via BPAY Post: Superannuation Complaints Tribunal, • estimate your concessional contributions cap space Locked Bag 3060, Melbourne VIC 3001 • view your reported values and caps. You can contact the Australian Financial Complaints If you have lost or forgotten your secure Access Number, Authority in one of the following ways: you can reset it in the Member Services Online login area Email: email@example.com at csc.gov.au. If you need help with this, or you would like Phone: 1800 931 678 to request any other PSS information, contact us on the Post: Australian Financial Complaints Authority, below details. GPO Box 3, Melbourne VIC 3001 Email Phone Fax firstname.lastname@example.org 1300 000 377 02 6275 7010 How can I get Web Overseas callers Post more information? csc.gov.au +61 2 6275 7000 PSS, GPO Box 2252 Canberra ACT 2601
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