Changing work patterns and your super

Working part time

Changing your work pattern to part time may reduce the amount you and your employer pays into your super. This can impact the future growth of your super benefits.

Your PSS Defined Benefit is calculated taking into account your length of membership, super salary, work hours and rate of contribution. If you have a separate accumulation amount (such as Post 95), this is separate to your Defined Benefit amount and is only subject to investment earnings.

To calculate your final PSS benefit we use your Final Average Salary (FAS), which is generally the average of your salaries on each of your three birthdays before you leave PSS. The salaries are always the full-time equivalent—your FAS is not reduced if you are part time.

We multiply your FAS by your accrued benefit multiple (ABM). Your benefit multiple accrues according to your rate of contribution, length of service, and work hours. Your benefit multiple grows each fortnight with each contribution you make.

If your work pattern changes to part time, your ongoing multiple accrual from your next birthday will be reduced pro-rata according to the approved hours worked on your next birthday. You can switch back and forth between part time and full time depending on your status at your birthday or on membership recommencement.

If you permanently reduce your work hours for health reasons and a Partial Invalidity Benefit is granted, your benefit accrual will continue at the pre-reduction rate—even though your contributions are at a part-time rate. If you’re already part time, you may also permanently reduce your hours, but your benefit will only grow at your part-time rate before the permanent reduction for health reasons occurs.

Part-time and casual work

Log in to the CSC Navigator and try our i-Estimator to calculate what your pension might look like when you leave work.

Returning to Australian Government employment

If you return to Australian Government employment on a full-time or permanent part-time basis with a preserved PSS benefit and your new employer participates in PSS arrangements, you must re-join as a PSS member—provided that you have not opted out of PSS and you meet PSS eligibility requirements.

However, if you return to Australian Government employment on a casual or temporary part-time basis, becoming a PSS member is optional. If you wish to re-activate your PSS account as a casual or temporary employee, you must let your employer know. If you don’t nominate a chosen fund, your super will be automatically attributed to your existing accumulation super fund if you have one (this is known as ‘stapling’), or a new account will be set up as per your employer’s default super fund (which will generally be PSSap for APS employment).

Transition to retirement (TTR) strategy

Transition to retirement (TTR) involves receiving some of your super now as an income stream while still working and contributing to your super. You must have reached age 60 and be under age 65 to use a TTR strategy.

You can’t receive your PSS benefit while you’re a contributing member. However, in limited circumstances, you can cease contributing to PSS and access your benefit as a pension* while remaining employed with the same employer. These include changing to temporary, part-time or casual employment (your employer must agree to this arrangement).

* Your claimed PSS benefit will count towards your Transfer Balance Cap.

For more information read Ceasing PSS membership.

Transition to retirement (TTR) products

There are two CSC products that have been designed to complement your existing PSS benefit and provide you with more flexible options for your super.

If eligible, you can remain a contributing member of PSS and:

• apply to join Commonwealth Superannuation Corporation retirement income (CSCri) (we will open a PSSap personal accumulation account to accept and consolidate funds) and take up a transition to retirement income stream; and/or
• apply to open a PSSap personal accumulation account (you will be a member of two super schemes) to make salary sacrifice and/or other eligible contributions.