Financial advisers
We are encouraging PSS members to seek financial advice to help them with their expanded options. We want to help you help your clients, so here are the facts.

What’s changed?

From 1 July 2008 PSS members’ options will be expanded allowing them to:

• contribute to the PSS on a voluntary basis
• choose to preserve their PSS benefit and have their future employer contributions paid into the PSSap (ARIA’s accumulation plan).

Voluntary member contributions

Previously members have been required to contribute between 2% and 10% of their salary towards their super. From 1 July 2008, they will be able to choose to continue to contribute between 2% and 10% of their salary OR choose not to contribute at all.

ARIA sees this expanded option as presenting members with a great opportunity to explore the unique benefits of the PSS and how their rate of contribution determines the size of their final defined benefit.

Move to the PSSap

From 1 July 2008, members will have the option to preserve their PSS benefit (it cannot be rolled over to another fund) until they retire from the workforce, and have their employer contributions paid into the PSSap. Once they become a PSSap member, they have access to choice of fund. However, if they choose to leave the PSS they will not be able to change their mind and become a contributing member again.

As a defined benefit scheme the PSS gives members the security of a long-term superannuation benefit that is ‘defined’ in advance. They:

• pay no fees (the employer pays these)
• receive employer benefits that accrue well above the 9% SGC rate
• have the investment risk carried by their employer
• automatic death and invalidity cover, at no cost; and
• have a number of flexible retirement benefit options (lump sum, indexed pension for life or a combination of both).

See the PSS Quick Guide to find out more.

The PSSap is an accumulation scheme that offers Australian government employees a number of unique benefits, including:

• after fees, taxes and management costs, investment earnings are returned to members. Employers also reduce members cost by contributing towards the cost of administering the PSSap.
• employer contributions of at least 15.4%
• investment choice; and
• low-cost income protection and death and TPD cover.

See the PSSap Quick Guide to find out more.

Further information to assist your clients

• Download our Fact Sheet for Financial Planners.
• Visit www.pss.gov.au and www.pssap.gov.au
• Download the PSS Super Book, PSS PDS and the PSSap PDS.
• See how the PSSap compares to other accumulation funds with Super Ratings Fundamental fact sheet.
• See the information booklet sent to PSS members.