How does the CSS work
The CSS is a hybrid super fund. This means that it’s a combination of two types of funds — a defined benefit fund and an accumulation fund.
In a defined benefit fund, member benefits are ‘defined’ by a formula. In the CSS, the defined benefit part is generally the CPI-indexed pension which is defined by a formula based on your final super salary, your length of contributory service and your age at exit.
Whereas in an accumulation fund, member benefits are determined by the value of contributions and investment returns. The accumulation part is your contributions plus Fund earnings (known as the ‘member component’) and your employer’s fortnightly contributions to your super (known as the ‘productivity component’).
With the CSS, planning for your retirement has never been easier.
- How much do I have to contribute?
- What is the productivity component?
- What is the employer-financed component?
- How can I calculate my retirement benefit?
- Managing your money
- Need to find out more?
- Sound investment strategy
How much do I have to contribute?
In the CSS, you can decide how much you contribute – either 5% of your salary or you can choose not to contribute at all (0%). These rates are referred to as your basic contributions, and form the basis for many benefit calculations.
In addition to your basic contributions, you may also voluntarily pay supplementary contributions. These do not have to be in whole percentage rates. For example, you could pay contributions of 6.5%. There is no upper limit on the amount of supplementary contributions that you can pay and you can change your contribution rate at any time to suit your financial needs. You can make supplementary contributions from your salary or through BPAY*. However, if you elect a zero (0%) basic contribution you must pay any supplementary contributions via BPAY.
The earning rate of the fund will be applied to your basic and supplementary contributions.
The CSS is flexible, and you can change your contribution rate to suit your financial needs. To change your contribution rate, complete the CSS Election to change my contribution rate form and send it to your personnel section. You may also be able to change your contribution rate via email. Check with your personnel section to see which method they prefer.
* You will need an Access Number to use BPAY. If you don’t have an Access Number, call us on 1300 000 277 and we can provide one over the phone.
What is the productivity component?
This is your employers fortnightly contribution made on your behalf plus Fund earnings
What is the employer-financed component?
This is usually paid as a CPI indexed pension financed by your employer. The size of this component depends on a number of factors including your age at exit, the length of your scheme membership (actual or prospective according to the reason of leaving) and final salary.
How can I calculate my retirement benefit?
You can estimate your retirement benefit by using the i-Estimator in Member Services Online.
Managing your money
The scheme’s key objective is to maximise members' real returns while minimising risks.
The CSS funds are divided into investment portfolios and looked after by investment managers who have expertise in particular asset classes, such as shares, property or debt.
Please refer to investments for more information
Sound investment strategy
The CSS investment strategy is based on four integral principles:
1 Taking a global view
Investing only in Australia can limit potential returns. ARIA searches for investment opportunities in both established and emerging international markets.
2 Long-term versus short-term
It is important to maintain a balance between short- and long-term investment. Our investment strategy is based on a long-term outlook rather than short-term expectations, but we are cognisant of the desirability of reducing short-term volatility.
3 Diversification
Your Scheme's investments are spread over all major asset classes to spread risk.
4 Structuring to capture market returns
While the overwhelming majority of your Scheme's investments are actively managed by specialist investment managers, these managers generally operate within investment constraints designed to ensure that their returns capture at least most of the return delivered by the market in which they operate.
Need to find out more?
It is important that you understand your rights to contribute and receive benefits from the CSS.
If you require additional information, please contact us during business hours on 1300 000 277.
