Investment & performance

Commonwealth Superannuation Corporation is trustee of PSS and responsible for investing and managing scheme funds in the best interests of all members.

Commonwealth Superannuation Corporation’s investment objective is to maximise real investment returns within a tolerable level of short-term volatility.

In this section also find out about:

 

How do investments affect my final PSS benefit?

I’m a contributing member

If you are a contributing member, your total final PSS defined benefit is largely unaffected by investment performance because it is ‘defined’ by a set formula based on:

  • your final average salary (FAS)
  • your contribution rate
  • your length of PSS membership.

However, transfer amounts into PSS after 1995 and any super co-contribution amounts you receive are affected by investment performance. Ultimately, how much you contribute to PSS will determine your final benefit.

 

I’m a preserved or associate member

If you are a preserved or an associate member, investment performance more directly impacts your benefit because your total benefit is no longer defined by a set formula. Taxed components (your member and productivity components) move in line with scheme earnings which may be positive or negative; untaxed components (your employer-financed component) continue to grow in line with the Consumer Price Index.

 

Do I have investment choice?

Only preserved benefit and associate members have investment choice; you can elect to switch to the Cash Investment Option if you wish. However, all members may find it useful to learn how PSS performs.