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.
Any advice on this website is general only and has been issued 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 advice does not take into account your personal objectives, financial situation or needs. Before making a decision about the product, you should consider the appropriateness of the product having regard to these matters and the relevant PDS and TMD available at www.activesuper.com.au or by calling us on 1300 547 873. If you would like advice that takes into account your personal circumstances, please contact a financial adviser.
Active Super has engaged Industry Fund Services Limited (ABN 54 007 016 195) (AFSL No 232514) (IFS) to facilitate the provision of financial advice to members of Active Super. Advice is provided by one of IFS’ financial planners who are Authorised Representatives of IFS. Fees may apply. Further information about the advice services that can be provided is set out in the relevant Financial Services Guide, a copy of which is available for download at www.activesuper.com.au or by calling 1300 547 873. IFS is responsible for any advice given to you by its Authorised Representatives.