Retrenchment

Retrenchment occurs when your employer terminates your employment, or when you accept an offer of retrenchment or a redundancy package. In these situations, you may be entitled to a retrenchment benefit from PSS.

You may also be entitled to one if you are retired on inefficiency grounds, as a result of having lost essential qualifications or, in restricted cases, on termination of contracts. A retrenchment benefit is not payable following completion of a fixed-term contract, however a resignation benefit may be payable. But you may be eligible to a retrenchment benefit if you are a PSS preserved benefit member due to ceasing your membership.

Please read our Redundancy [PDF 388 KB] factsheet to learn more about your options.

Retrenchment options

Which means

1. Preserve your total benefit in PSS

You preserve your total benefit in PSS for payment at a later date; your preserved member and productivity components grow with scheme earnings and your employer component grows with CPI; and you can invest your member and productivity components in the Cash Investment Option if you wish. You can claim your preserved benefit when you permanently leave the workforce after reaching age 55, or if you change employers at age 60 or after.

You can take your preserved benefit as a lump sum, CPI indexed pension or combination of both these benefit options.

2. Take part of your benefit as a lump sum and preserve your remaining benefit in PSS (available to members who joined before 1 July 1999 only)

You take part of your benefit as a lump sum and preserve the rest in PSS; your preserved member and productivity components grow with scheme earnings and your employer component grows with CPI

3. Take a lump sum only

You receive your total benefit as a lump sum; some restrictions apply if you have not reached age 55; you can also roll it over to another rollover institution

4. Take a pension only

You convert your total benefit to a CPI-indexed pension which is payable for life and indexed twice each year. Reversionary benefits are payable  to your eligible spouse and children if you die

5. Take part of your benefit as a pension and part as a lump sum (for members who joined before 1 July 1999 only)

You take your  benefit as a CPI indexed pension and a lump sum; some restrictions apply if you have not reached age 55; reversionary benefits are payable  to your eligible spouse and children if you die

6. Transfer your benefit to another eligible super fund (this is not a rollover)

You elect to pay a transfer value of your total PSS benefit (less any surcharge debt) to another eligible super fund if you become employed with an employer that participates in an eligible super scheme

 Any accrued surcharge debt you may have in PSS will be recovered before your benefit is paid to you.