About PSS

PSS provides benefits for members of the Australian Public Service (APS) between 1 July 1990 and 30 June 2005.

PSS is a Defined Benefit super fund, which means the final benefit is determined by a formula, and in some circumstances may include an additional accumulation component made up of any transfer amounts, government contributions and investment earnings.

PSS closed to new members on 30 June 2005. Only current contributing members can put money into their PSS or receive employer contributions.

PSS preserved members and invalidity pensioners may be able, or required, to rejoin PSS as a contributing member if they return to employment with an eligible employer.

See the CSC Eligibility Determiner fact sheets for APS employees and Non-APS-employees for information about who can join PSS.

If members have worked for multiple eligible employers, they may have multiple PSS memberships. This is because PSS members are given a new membership for each period of eligible employment unless continuous service applies.

Multiple memberships are treated differently depending on whether they are non-concurrent or concurrent periods of membership.

See Multiple PSS memberships for more information.

In a defined benefit fund, a member’s retirement benefit is determined by the fund's rules and is calculated using the formula Final Average Salary (FAS) x Accrued Benefit Multiple (ABM).

The ABM accrues fortnightly and is based on the member’s length of employment with the employer and contributions made by the employer and member, including any additional contributions. FAS is generally the average of the last three birthday super salaries. 

PSS members do not pay any administration, buy–sell spreads, switching or any other ongoing administration fees, as these costs are covered by their employer (or their former employer if they are a preserved benefit member).

For more information see About PSS.

Contributing members are in eligible employment and contributions are being made to their PSS account.

Preserved members can be members who have:

• ceased eligible employment, are no longer making contributions and have left their PSS balance preserved in the fund for payment at a later date; or
• opted out of PSS and joined an alternative fund.

To set up a preserved benefit see the Preservation of benefits fact sheet.

Associate members are those who have a preserved benefit as a result of a family law split of a PSS account.

Members cannot salary sacrifice into PSS, but a member can salary sacrifice into a complying super fund of their choice, or to PSSap as an Ancillary member.

PSSap Ancillary is a super account issued by CSC that complements the member’s PSS membership. Joining PSSap won’t affect the member’s PSS membership or final benefit calculation.

For more information about PSSap and eligibility see PSS accumulation plan. 

PSS does not offer a Transition to Retirement (TTR) to contributing members. However, eligible members can access TTR through the options listed below.

Members can:

• join PSSap as an ancillary member to access CSCri (i.e. open a CSCri account), meaning they will be a member of two government super schemes (PSS and PSSap); and
• open a CSCri account using amounts from their PSSap Ancillary account, another eligible super fund, and/or an eligible superannuation contribution (such as an after tax/non-concessional contribution).

For more information see the PSSap PDS and CSCri PDS.

Members can claim their benefit:

• from age 55 if they are retired
• at age 60 if they meet a condition of release, or
• at age 65.

For more information see Accessing your benefit .

Depending on a member’s circumstances, they may be eligible to roll out some or all of their PSS benefit.

For more information see Rolling out your benefit.

PSS pensions  (other than invalidity pensions) are generally payable for life and are not subject to income or asset tests. However, any pension may affect a pensioner's entitlement to benefits or other government assistance from Centrelink, Comcare, or the Department of Veterans' Affairs.

Invalidity pensions are based on personal earnings or the member’s fitness to return to work. As such, CSC may review the member’s invalidity or partial invalidity pension until their 60th birthday. Invalidity pensions can be reduced or suspended if the member is under age 60, working and earning over certain thresholds.

There is no account balance for defined benefit pensions. However, a pension will have a transfer balance cap (TBC) value.

All benefit components except for the Employer Component are invested. There are two investment options: 

• Default Fund
• Cash Investment Option. 

For more information see the PSS Investment options and risk flyer.

Contributing members are invested in the Default Fund and cannot switch. While preserved, member and productivity components accrue at the fund’s earning rate and the employer component accrues in line with the Consumer Price Index (CPI).

Investment returns are available at How we perform.

Preserved and associate members can choose the option they prefer. If they do not choose, the Default Fund option will apply. To switch, members can:

• log into the CSC Navigator, or
• download, complete and return a PSS investment option switching form.

Death and invalidity benefits are a feature of PSS membership; they are not considered a form of insurance. These benefits are provided under the scheme rules and members do not pay insurance premiums or fees.

For more information see the PSS Death and invalidity benefit booklet.

Contributing members under age 60 can apply for Additional Death and Invalidity Cover (ADIC). If approved, the employer will pay half of the standard risk premium. ADIC is underwritten cover provided by CSC's insurer AIA Australia Ltd.  

View PSS Additional Death and Invalidity Cover (ADIC) for more details.

PSS members can’t nominate a beneficiary. Benefits are paid according to scheme rules—generally to an eligible spouse and/or children. If there is no eligible spouse or children, benefits may be payable to children otherwise considered ineligible or to the member’s estate.

PSS pensions

PSS pensions are subject to Pay As You Go (PAYG) tax, in the same way that salary is subject to fortnightly tax. Members may be eligible to receive tax concessions or offsets such as the 10% tax offset that is applied from age 60.

Invalidity pensions

A 15% offset applies to any taxable component of an invalidity pension from the time a member initially receives the pension until they reach age 60, when the taxable component becomes tax-free.

Lump sums

Tax on lump sum benefits will depend on whether the benefit is sourced from member contributions paid into PSS and earnings on those contributions (taxed source) or from other sources (untaxed source). 

Download the Tax and your PSS super flyer for more information.