Super in focus
Inside the PSS: preserved members profit from defined benefit scheme
The PSS is a defined benefit scheme, which means that the employer component of your benefit is calculated according to a formula when you leave employment and preserve your benefit.
| Member component | This is made up of the member contributions you made while you were a contributing member, plus ongoing fund earnings (positive or negative). |
| Productivity component | This is made up of the fortnightly contributions your employer made while you were a contributing member, plus ongoing fund earnings (positive or negative). |
| Employer component | This is a defined amount financed by your employer, which is payable when you leave the workforce. |
| Additional contributions | This is made up of super you have transferred from other funds and government co-contributions you have received, along with any ongoing fund earnings (positive or negative). |
How do I benefit from the PSS?
Being part of the PSS has many benefits. As a preserved member, these include:
- no administration fees – your previous employer pays these
- a choice between the PSS Default Fund and the Cash Investment Option
- a range of flexible retirement options, including a CPI-indexed pension for life.
Unclaimed benefits
PSS preserved benefits must be paid when you reach age 65. If you don’t claim your benefit at that time the benefit may be treated as an unclaimed benefit and sent to the ATO. If your benefit has been sent to the ATO as an unclaimed benefit you may also lose the option to take all or part of your benefit as a pension.
Superannuation surcharge
The Australian Government abolished the superannuation surcharge from 1 July 2005 but you may still have to pay it in certain circumstances. For example, if your adjusted taxable income for any years when the surcharge applied, was higher than the annual thresholds, you may have some outstanding tax to pay. Also, if you didn’t provide your tax file number to the PSS, you may have a surcharge debt in relation to certain employer contributions reported to the ATO up to and including the 2004/05 financial year.
The ATO determines whether you’ve incurred a surcharge debt and if you have, the amount will be shown in the surcharge debt table on your Member Statement. If you have a surcharge debt, you don’t have to pay it now – it will be deducted from your PSS benefit when it’s paid to you. If you want to, you can reduce your surcharge debt by making early payments.
Interest calculated at the 10-year Treasury Bond Rate will be applied to any outstanding balance of your surcharge debt account as on 30 June each year. If the surcharge amount shown in your Member Statement varies from the amount you were advised by the ATO, please contact them on 13 10 20.
To find out more about your PSS super and being a preserved member, download the PSS super book.
