Retrenchment benefits

Retrenchment occurs when your employer terminates your employment, or when you accept an offer of retrenchment or a redundancy package.

Retrenchment benefits are also payable if you retire on inefficiency grounds, as a result of having lost essential qualifications or, in restricted cases, on the termination of contracts.

A retrenchment benefit is not payable following completion of a fixed-term contract. A resignation benefit is payable in these cases.

If you are a preserved PSS member (as a result of electing to cease membership) you may be eligible for a retrenchment benefit.  

To find out if you are eligible and for more information see The facts about Retrenchment or the PSS super book . 

Your retrenchment options

In brief, your retrenchment options are to:

Preserve your total benefit in the PSS

You can preserve your total benefit in the PSS for payment at a later date. You can claim your preserved benefit when you permanently leave the workforce after reaching age 55, or if you change employers after reaching age 60. You can take your preserved benefit as a lump sum, a CPI-indexed pension, or a combination of both.

Whilst preserved, your member and productivity components will grow with Fund earnings, and your employer component will grow with CPI.

As a preserved benefit member, you can also elect to transfer your member and productivity components to the Cash Investment Option.

Take part of your benefit as a lump sum an preserve the balance in the PSS (this option is only available to members who joined before 1 July 1999)

You can take part of your benefit as a lump sum and preserve the balance in the PSS.

Whilst preserved, your member and productivity components will grow with Fund earnings, and your employer component will grow with CPI.

Take a lump sum only

We can pay this amount to you as a lump sum. Some restrictions apply if you have not reached age 55.

You can also rollover your lump sum to another rollover institution if you wish.

Take a pension only

You can convert your entire benefit to a CPI-indexed pension, which is indexed twice yearly and payable for life.

There are reversionary benefits payable to eligible spouse and children in the event of your death.

Take part of your benefit as a pension and part as a lump sum (this option is only available to members who joined before 1 July 1999)

You can take your benefit as a combination of CPI-indexed pension and a lump sum. Some restrictions apply if you have not reached 55.

There are reversionary benefits payable to eligible spouse and children in the event of your death.

You can arrange to have a transfer value paid to another eligible scheme (this is not a rollover)

If you become employed with an employer that participates in an eligible superannuation scheme, you can pay a transfer value of your total benefit to that scheme.

 

Find out more in the facts about retrenchment benefits or the PSS Super Book.