State Superannuation Scheme (SSS)
Are you in a super scheme that doesn’t fluctuate?
SSS is the State Superannuation Scheme. It’s a defined benefit scheme, and your final superannuation payment will be based on a formula that is unique to your particular fund. This means that your retirement benefit is not affected by the ups and downs of investment markets.
What will suit your lifestyle: Pension or Lump Sum?
When you retire and access your final SSS benefit, you generally have the option of:
- Taking it as a pension
- Converting it to a lump sum
- Taking a combination of pension and lump sum
The importance of timing
Deciding whether to convert some of your pension (if any) to a lump sum and how much to convert will depend on your individual circumstances, your goals and lifestyle objectives.
However, it’s important to know that you can only ever make the decision to convert your pension to a lump sum once and then only at prescribed times.
If you commence your pension on or after age 55, you need to elect to convert a lump sum within 6 months either before or after your pension commences. If you don’t make an application before reaching age 60, you have a second chance to apply within six months of your 60th birthday.
However if you commence your pension after age 60, there’s no second opportunity.
Knowledge may be power, but it also delivers results
There are also different rates which apply depending on when your pension is exchanged for a lump sum, so you really need to know your scheme options to make sure you’re maximising your benefit.
Deciding what to do, and adjusting any amount of your SSS pension to a lump sum is an important life-style decision, and will be different for each individual. As it can only be done once and at specific times, it’s important you speak with your financial planning team at StatePlus to ensure you under-stand your options and can make the decision that’s right for you.
You can meet with one of our professional financial planners without cost or obligation.
At StatePlus, product and advice fees apply only when you decide to invest and partner with us on an ongoing basis. So give your member service team a call on 1800 620 305, or book an appointment right now to speak to the experts who understand your SSS scheme choices.
Can you relate to John?
For example: John, age 49, is a SSS member earning $150,000 pa with a retirement age of 60. His employer concessional contributions are calculated as $150,000 x 4.8% = $7,200. He is also salary sacrificing his member contributions of $23,000 pa. While the $7,200 of employer contributions and $23,000 of salary sacrifice contributions to SSS mean John has $30,200 of concessional superannuation contributions, SSS will only report $30,000 of concessional contributions. Any other pre-tax superannuation contributions John receives will be excess contributions.
How our planners can help
To get the best results with your financial planning, speak to your friendly team at StatePlus. They’ll make sure you’re maximising the opportunities that come from being a SSS scheme member.
Take a look at our Building Your Wealth page for more information on concessional contribution caps.
Visit one of our SSS seminars to find out more about preparing for retirement.