Super in focus
Inside the CSS: members benefit from super mix
Unlike most Australian super schemes, your super is part defined benefit and part accumulation. For contributing members (if you leave as an age-retiree), your CPI-indexed pension isn’t affected by the fund’s investment performance.
For CSS members your benefit is made up of:
| Your member component | This is made up of your basic contributions (5% or 0% of your salary) and your supplementary contributions (any contributions above your basic contributions), and includes any fund earnings (positive or negative). |
| Your productivity component | This is made up of your fortnightly employer contributions as well as any fund earnings (positive or negative). |
| Employer-financed component | This is a defined amount financed by your employer, which you receive as an indexed pension when you leave the workforce. |
| Additional amounts | Any additional amounts you’ve transferred in from other super funds and any government super co-contributions. |
Why your contributions are important
If you’re a CSS contributing member one of the most important choices you need to make is the rate at which you’re going to contribute. For many people, this mostly affects the accumulation part of their super, but for some members it will also affect the pension benefit they’re entitled to. Before you decide to stop contributing you should seek professional advice from an experienced financial adviser.
To find out more read the Contributions fact sheet.
How the CSS benefits you
As a member of the CSS, you get:
- a high value employer benefit well above the superannuation guarantee
- no administration fees – your employer covers these costs
- the option of changing your contribution rate at any time to suit your financial needs
- automatic death and invalidity cover at no extra cost
- a choice between two different investment options – the Default Fund or the Cash Investment Option
- a range of flexible retirement options, including a CPI-indexed pension for life.
Eligible rollover fund
If your super becomes payable as a lump sum and we don’t receive instructions on how you’d like your claim paid within 90 days of you stopping work, it can be paid into an eligible rollover fund. ARIA’s nominated fund is:
AUSfund
PO Box 2468
Kent Town SA 5071
Phone: 1300 361 798
If your benefit has been transferred, you must claim it from the rollover fund and you’ll be subject to its terms and conditions.
Superannuation surcharge tax
The Australian Government abolished the superannuation surcharge from 1 July 2005 but you may still have to pay it in certain circumstances. For example, if your adjusted taxable income for any years when the surcharge applied, was higher than the annual thresholds, you may have some outstanding tax to pay. Also, if you didn’t provide your tax file number to the CSS, you may have a surcharge debt in relation to certain employer contributions reported to the ATO up to and including the 2004/05 financial year.
