Please note: The Retirement Scheme is a split-benefit or ‘hybrid’ scheme–it is a mixture of accumulation and defined benefits. Upon exiting the Retirement Scheme a member is entitled to a lump sum comprising:
A Contributor Financed Benefit, which is made up of a member’s defined contributions and their investment earnings, less fees and charges. It is an accumulation style account.
An Employer Financed Benefit, which is a defined benefit, funded by the employer and calculated at the time of exit using a formula.
A Basic Benefit, which may consist of two parts:
A defined Basic Benefit, calculated using a formula as 3% of a member’s salary at exit for every superable year (or part-year) of service since 1 April 1988.
Another accumulation component, known as the Other Contributions account, which accepts funds that can’t be paid into the Contributor Financed Benefit account, such as co-contributions, 180 Benefit Points contributions, award contributions, other top-up contributions and rollovers.
As an alternative to requesting a lump sum payment upon exiting the Retirement Scheme, a member may choose to leave all of their benefit in the Scheme as a Deferred Benefit. The entire value of a Deferred Benefit, including the Employer Financed Benefit and defined Basic Benefit, is invested in line with the member’s investment choice.
This website is provided by LGSS Pty Limited (ABN 68 078 003 497) (AFSL 383558), as Trustee for Local Government Super (ABN 28 901 371 321) (Active Super). The information shown on this website is general information only and does not take into account your investment objectives, financial situation or particular needs. Accordingly, you should consider your own particular circumstances, refer to the relevant Product Disclosure Statement and consider seeking professional personal advice before making any financial decisions. Refer to the relevant Target Market Determination for an outline of the target market the product has been designed for.