Salary sacrifice for PSS and CSS members - available July 2013
CSS and PSS members can join the Public Sector Superannuation accumulation plan (PSSap) as ‘Ancillary Members’ from July 2013. Ancillary membership allows CSS and PSS members to make salary sacrifice contributions and consolidate benefits from other funds into the PSSap. This means you can keep all of your super within a government fund.
Joining PSSap as an Ancillary Member will not change your CSS or PSS membership or final benefit calculation in any way. It means that you will be a member of two government super schemes – the CSS or PSS, and PSSap.
What are the benefits of making salary sacrifice contributions?
- Boost your total super savings – even salary sacrificing small amounts such as $50 or $100 a fortnight can grow into a much larger account balance over time thanks to investment returns and tax concessions
- Reduce your taxable income – salary sacrifice contributions are paid from your before tax salary, salary sacrificing can lower your taxable income and reduce how much tax you pay a year
- Transition to retirement – contributing CSS and PSS members who are also PSSap Ancillary Members and are aged 55 and over can receive regular income from an account-based retirement product called Commonwealth Superannuation Corporation retirement income (CSCri) as they salary sacrifice into the PSSap while continuing in full or part-time work.
What are some of the product features for PSSap Ancillary Members?
- Four investment options – Cash, Income Focused, Balanced and Aggressive
- You can roll in monies from external super funds to consolidate in the Ancillary Member account
- No insurance as you will have coverage in your existing PSS or CSS membership
- A modest fee will be charged to cover the cost of administration.
Do you need financial advice?
Salary sacrifice is just one wealth building strategy that you may wish to discuss with a qualified financial planner who understands your fund and your individual situation. Personal financial advice can help to achieve your financial needs and goals now and in the future.
To make a personal financial advice service available to you, your super trustee, Commonwealth Superannuation Corporation, has partnered with experienced financial planners from Industry Fund Services. It is ‘fee for service’ advice, which means you receive a fixed quote up front. There are no obligations, commissions or hidden fees.
Your first meeting with your Industry Fund Services financial planner is free. To book today please call 1300 277 777 during business hours or visit csc.gov.au/advice to learn more.
Further information regarding salary sacrifice and Ancillary membership will be available on the PSSap website in July 2013.