Fund earnings affect the member and productivity components, as well as any amounts transferred into the CSS (known as accumulation components). The earnings applied to your account will either be positive or negative in line with the investment performance of your chosen option. If you have a productivity component that was accrued prior to 30 June 1990 (commonly referred to as interim or unfunded productivity), it will be credited with earnings based on the performance of your chosen investment option.
The impact of Fund earnings on your final benefit will depend on your mode of exit from the CSS:
If you claim your benefit as a contributing member
If you claim your CSS benefit as a contributor on the basis of age, invalidity or involuntary retirement, your indexed pension, the employer financed part of your benefit, will not be affected by investment performance. It will be determined by a formula based on your age, final salary and contributory membership. As your accumulation components are affected by Fund earnings, any lump sum benefit or additional pension you take will be affected.
If you claim your benefit as a deferred benefit member
When you claim your deferred benefit, your indexed pension, the employer financed part of your benefit, will be affected by investment performance as it is based on a percentage of your accumulated basic contributions. As your accumulation components are affected by Fund earnings, any lump sum benefit or additional pension you take will also be affected.
If you claim your benefit as an associate member
If you are an associate member, the most significant part of your benefit will not be affected by investment performance. It will be determined based on the value of the employer (untaxed) financed benefit at the time you became an associate member, adjusted by the long-term Treasury Bond Rate. However, the accumulation components of your benefit, which are refunded as a lump sum, will be affected by Fund earnings