Age retirement

Age retirement benefits are payable if you leave the workforce after you reach your minimum retirement age which is 55 for most PSS members. View your minimum preservation age.

If your employment is terminated before you reach your minimum retirement age, this situation is regarded ‘resignation’ for superannuation purposes – unless your employment termination is due to retrenchment, invalidity or death.

Your age retirement options depend on:

Any accrued surcharge debt you may hold when your benefit is claimed will be deducted from your final benefit. Normally, your pension will be reduced to discharge this debt.

But you can also choose to have your debt deducted from your lump sum benefit.

 

Retirement on reaching minimum preservation age

You have these choices if retiring from the workforce on or after you reach preservation age.

Retirement options

Which means

1. Take a lump sum with no pension

You receive a once-only lump sum of your three benefit components

2. Convert your lump sum to a pension

You can convert (ie exchange) a minimum of half, and up to all, of your lump sum to an indexed pension; if you decide to convert less than your total lump sum to an indexed pension, your balance is paid to you as a lump sum

3. Preserve your whole benefit

You can preserve your whole benefit in PSS and take it later as either a lump sum, an indexed pension or a combination of both. If you subsequently join another eligible superannuation scheme you may be able to transfer your benefit to that scheme.

4. Choose partial preservation

You take a lump sum of less than the full amount of your PSS benefit and preserve the balance in the scheme. But if you do this you will not be able to take the balance as pension.

While any part of your benefit is preserved, your member and productivity components attract scheme investment earnings, while your employer-financed component is adjusted annually in line with CPI movements.

 

Retirement on reaching minimum retirement age

You have these choices if retiring from the workforce on or after you reach your minimum retirement age (55 for most members) but before you reach preservation age.

Retirement options

Which means

1. Preserve your whole benefit

You can preserve your whole benefit in PSS for payment at a later date; you can then claim your preserved benefit and roll it over to another fund, provided you have retired permanently

2. Choose partial preservation (available to members who joined PSS before 1 July 1999 only)

You are paid a lump sum of up to your SIS upper limit (zero if you joined after 30 June 1999) and preserve the balance in PSS for payment at a later date; you will not be able to convert any part of your remaining balance to a PSS pension, but you can subsequently roll over your balance to a fund of your choice

3. Take a lump sum and pension (available to members who joined PSS before 1 July 1999 only)

You are paid a lump of up to your SIS upper limit (zero if you joined after 30 June 1999) and, if the balance is 50% or more of your total benefit, convert it to a pension

4. Take a pension only

You take your whole benefit as an indexed pension