Informing your employees about the 1 July changes
If you would like to let your employees know about the 1 July CSS and PSS expanded options, you can use the email template below.
For more information also take a look at the ‘explore’ websites at www.explorecss.com.au or www.explorepss.com.au. We are also in the process of sending out an information pack to members.
If your employees still have questions regarding the new options, please get them to call their scheme directly:
- CSS members phone 1300 000 277 or email members@css.gov.au
- PSS members phone 1300 000 377 or email members@pss.gov.au
Suggested email to your employees for 1 July CSS and PSS expanded options
Dear employee,
You will soon receive an information pack in the mail from your superannuation scheme about your expanded options effective 1 July 2008.
For CSS members only
From 1 July 2008, your member contribution will become voluntary.
You are currently required to contribute 5% of your after-tax salary towards your super. You can change your contribution rate at any time and there is no upper limit on the amount of supplementary contributions you can pay.
From 1 July 2008, you can continue to contribute 5% (as your basic contributions) OR you can choose not to contribute at all (0%). Your member contributions will remain at their current rate if you decide not to make any changes. This is a great opportunity to explore how your contributions affect your final benefit and to check if you are contributing at the rate to achieve your goals.
You should be aware that if you choose not to contribute at all, it won’t affect your CPI indexed pension if you retire after 55. However, if you resign and preserve your benefit, it could have a detrimental impact on the amount of the pension you may otherwise receive.
Take time to explore your options – visit www.explorecss.com.au for more details.
For PSS members
From 1 July 2008, you will be able to:
- choose to make contributions between 2% and 10% of your after-tax salary OR you can choose not to contribute at all
- elect to cease PSS membership and move to the PSSap – ARIA’s accumulation plan*.
From 1 July 2008, your member contributions will be voluntary
You are currently required to contribute between 2% and 10% of your after-tax salary towards your super. From 1 July 2008, you will be able to choose to continue to contribute between 2% and 10% of your salary or choose not to contribute at all (0%). This is a great opportunity to explore how your current contribution level may affect your final benefit and check if you are contributing at the rate to achieve your goals. If you decide not to make any changes, your member contributions will remain at their current rate.
You’ll now have the option of choosing an accumulation plan
From 1 July 2008, you will be able to choose to:
- Stay with the PSS – ARIA’s defined benefit scheme. The PSS gives you the security of a super benefit that is ‘defined’ in advance. You pay no scheme administration fees, receive automatic death and invalidity cover and a number of flexible options for taking your retirement benefit (lump sum, indexed pension or a combination of both).
- Move to the PSSap – ARIA’s accumulation plan*. The PSSap was established to meet the needs of Australian Government employees. It is an accumulation scheme where your contributions, employer contributions plus investment earnings less fees and taxes make up your final benefit. This works very differently from the PSS (see pages 16 and 17 of the booklet you received for a comparison). PSSap members receive generous employer contributions
(15.4%), a range of investment choices and death and TPD insurance cover^.
*Some PSS members will not be eligible to join the PSSap – check with your personnel section to see if you are eligible.
^ When moving from the PSS to the PSSap, your insurance options in the PSSap are subject to special conditions within the first 12 months. Visit the PSS website to find out more.
Take time to explore your options – visit www.explorepss.com.au for more details.