Frequently Asked Questions

Here are some of the most frequently asked questions about the CSS.
To get the answer click on the question.

General CSS questions

 

How can I change my contribution rate?

Complete the Election to vary super contribution rate form to vary your superannuation contribution rate. Forward your completed election to your personnel section or pay office for adjustment.

Contact us on 1300 000 277 for further information.

 

I've heard that if I leave the CSS after 30 June 2000, I won't be able to get any of my super until I retire, is this true?

No, this is not true.

Legislation introduced by the Government on 1 July 1999 restricts the amount of benefit you can take immediately as cash. It does not stop you from exercising any of the normal benefit options. Also, the restriction does not apply to a benefit that is taken as pension.

 

What are my election options on retrenchment?

The easiest way to find out about what your options are on retrenchment is to read the CSS product disclosure statement . Please read the section that describes involuntary retirement benefits before you contact us. By doing this, you will have a better understanding of your options and should be better placed to ask the right questions.

A CSS member who is retrenched or who accepts an offer of redundancy, can choose one of the following involuntary retirement benefits:

  • Preserve the total benefit — this option allows you to preserve (i.e. leave) your total benefit in the Fund for payment on or after attaining minimum retiring age (usually age 55).
  • Maximum pension — (only available to members aged 31 or more). If you are over age 55, the benefit is a CPI indexed pension (the employer-financed part) and an additional non indexed pension (your member and productivity part). Alternatively, you can take the productivity part as a lump sum.
    If you are under age 55, you will receive a CPI indexed pension and have the choice of taking your member part as a lump sum or as a non indexed pension. The productivity part must be paid into a rollover fund.
  • Pension and lump sum — (only available to members aged 31 or more). The benefit is a CPI indexed pension and a lump sum of your member part. The productivity part is also paid as a lump sum if you have reached preservation age and have retired from the workforce. Otherwise, that part must be paid into a rollover fund for payment on retirement from the workforce on or after reaching preservation age.
  • Lump sum only — this option provides a lump sum of 3.5 times your basic contributions and Fund earnings. Your supplementary contributions and interest (if any) are paid as a lump sum. Your productivity benefit and Superannuation Guarantee "top up" benefit must be rolled over if you are less than preservation age, otherwise it is paid as a lump sum.
  • Postpone the benefit — (for members who have reached their minimum retiring age). This option allows you to postpone receipt of all or part of your benefit until as late as age 65. Benefits cannot be postponed if you have retired from the workforce.

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How much will I receive when I finish work?

There are two ways you can find this out. You can:

  • Access the i-Estimator and estimate your retirement savings with your own figures.

    • OR

  • Request a benefit estimate (only for members retiring in the next 12 months)

If you would like an estimate of your benefit, please complete an Estimate request form and send it to us by fax, email or post. We are not able to give you an estimate over the phone until you complete the Estimate request form.

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What tax will I have to pay on my benefit?

Taxation of benefits is a rather complicated issue. So, it's probably easier to either use the i-Estimator or ask for a benefit estimate that takes account of the taxation requirements. You can do this by calling us on 1300 000 277. If you would like to read more on the taxation requirements, you can get a copy of an information leaflet, Taxation of Benefits, from your Personnel Section.

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When will I be paid my benefit?

If you have correctly completed your application form and your employer has duly completed the departmental report, your pension benefit (if applicable) normally commences on the next available pay day.

If you have elected to receive a lump sum, it is currently processed within 20 working days of your exit date or the date the correctly completed benefit application is received, whichever is later.

Important note: Unfortunately, however, despite the best efforts of staff, it is not always possible to achieve these goals when many members leave simultaneously. Please bear in mind that processing times are subject to workloads at the time a benefit application is received.

Remember also... Do not commit yourself to any financial arrangement before receiving your payment.

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I understand that the rules applying to early access to preserved benefits have changed. What's the current situation?

In the 1997 Federal Budget, the Treasurer announced changes to the rules applying to early access to preserved benefits on severe financial hardship and compassionate grounds. He also said that early access could no longer be obtained on the grounds of residing permanently overseas.

These new provisions apply to all applications for early access to preserved benefits received after 30 June 1997.

If you wish to apply for early access on the grounds of severe financial hardship, you should send your application to us. However, if you wish to apply for early access on compassionate grounds, you should send your application to the Australian Prudential Regulation Authority.

Your personnel section has got details of the eligibility requirements to get early access to preserved benefits on severe financial hardship grounds.

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What is my tax start date?

Your eligible start date for taxation purposes is either:

  • the date that you joined the CSS; or
  • your date for long service leave accrual purposes, whichever is earlier.

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Am I entitled to a tax offset or a deduction?

If you choose to be paid a non indexed additional pension you are entitled to a deduction against the pension purchased with your Non-concessional Contributions (i.e. the contributions you have paid since 1 July 1983).

If you purchase additional non indexed pension and you are over age 55 years, you would be entitled to a tax offset. The offset is 15% of the pension that you purchased with the member component or the post 1 July 1990 productivity portion of the benefit after any eligible deduction is subtracted from the non indexed part of the pension.

Offsets and deductions only apply if you purchase additional non indexed pension.

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How much is the offset?

The offset is 15% of the pension purchased with the member and post 1 July 1990 productivity components, reduced by any available deduction. Offsets only apply if you are over age 55, except for invalidity and spouses' pensions.

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Can I choose the components to be rolled over or converted to pension?

No. If you are buying additional non indexed pension the accumulated contributions are always used first. Then, providing you have not over funded your additional pension, you can convert your productivity to non-indexed pension.

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Some common errors that CSS members make when applying for a benefit

  1. Failure to nominate a rollover fund for compulsory preserved amount
    • Where a lump-sum benefit includes a compulsorily preserved productivity and/or Superannuation Guarantee (SG) amount, you must nominate a rollover fund for that productivity/SG amount.
    • For example, if you want to take your retrenchment benefit as a lump sum, and if the productivity and SG parts of that lump sum are compulsorily preserved. Here, you must nominate a rollover fund for the payment of those parts. If you don't, processing of the benefit will be delayed until a rollover fund is nominated.
  2. Incomplete or confusing rollover instructions
    • Hundreds of institutions will accept rollovers and many of these have multiple funds. If you do not provide adequate details to enable us to correctly describe rollover funds on rollover cheques, you run the risk of the benefit payment being delayed. Even worse, the rollover institution refuse to accept the cheque and returns it to us. This means that you will lose Fund earnings.
    • Please remember the following points:
    • We issue rollover cheques in the rollover institution's name but send them to the member's address. The member must forward the cheque to the rollover institution with the appropriate paperwork.
    • The rollover cheque has space for only 31 characters. Members should ask the rollover institution how the selected fund should be described on the cheque.
  3. Bank account instructions missing or incorrect
    • Direct deposit payments can be misdirected and delayed if members do no include the correct account name, BSB code and account number. Some financial institutions are very particular about these details and return payments to us if all details are not correct.
    • Please remember the following points:
    • Ensure that all account details are correct and legible. If there is any doubt about the correct details (especially the BSB code, which is essential to identify the correct branch or the bank) you should check with your bank.
    • We can only pay benefits to an account that is in the name of the member or where the member is named as one holder of a joint account.
  4. Election options not signed
    • Many benefit applications are received where the member has not completed and signed the actual benefit option election.
    • Often, a member who is retrenched assumes that, by providing bank account or rollover details for their lump sum, he has formally elected to receive his benefit as a lump sum. Also, a member who resigns sometimes assumes that a lump-sum benefit is automatically payable and don't bother signing the necessary election option.
    • Unfortunately, where a benefit application is received without the appropriate election option being signed, it must be returned to the member for completion. Invariably, this leads to delays in the payment of the benefit.
    • Please check your benefit application before you send it to ensure that you have completed and signed for the appropriate benefit option.
  5. Election not made within statutory time limits
    • For most forms of exit, you must complete a benefit election within three months of your date of exit. However, CSS preservation elections must be signed not earlier than one month before the date of exit but not later than 21 days after the date of exit.
    • CSS preservation elections signed more than one month before the date of exit are invalid and a new election must be submitted. Similarly, where a preservation election is signed more than 21 days after the date of exit, we must contact you to find out the reasons for the late election. These reasons are then considered in deciding whether your late election will be accepted.

Please make sure that you sign and submit your benefit election form within the time period allowed.

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Various questions about the Superannuation Contributions Surcharge

An information leaflet on the Surcharge is available under CSS Tax Surcharge. The leaflet covers most of the information you will need to understand the workings of this tax. The section also has an explanation of how to calculate your tax surcharge amount.

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Tips to help you protect your account information

Tips on choosing a strong secret question

As part of good account security we ask you to answer one of several 'secret questions'. If you ever forget your access number we will ask you for the answer to your secret question to help us verify your identity.

Keep in mind these tips on choosing a strong secret question and answer:

  • Choose a question from the list that is meaningful to you
  • Choose an answer that is memorable, but not easy to guess
  • Choose an answer only you would know
  • Choose an answer that is not likely to change over time
  • Choose an answer that is not associated with your password or username in any way
  • Make your answer a minimum of 5 characters long.

Protect your secret question

  • Never tell anyone your secret question or answer
  • Never write it down
  • Never send this information via email
  • Avoid using information you may have posted on social network sites such as Facebook, MySpace or personal websites.

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