Mar 2001 Volume 82 Number 3 "serving the protectors"
Exit Rate of Return

If you are under age 50 and you resign from SAPOL during a financial year you have the option to elect to preserve a superannuation benefit (pension or lump sum) until age 55 or take a withdrawal benefit. If you elect to take a withdrawal benefit you will be entitled to receive, in cash, your contribution account (your personal contributions plus interest). In addition you will also be entitled to a preserved employer lump sum benefit (under the Superannuation Guarantee Charge Commonwealth legislation).

A rate of return is applied to your contribution account to calculate the amount of interest due to you from the commencement of the financial year up to the date of payment. This rate of return is known as an exit rate of return.

The Superannuation Funds Management Corporation of South Australia (Funds SA) is responsible for the management and investment of the assets (member contributions) of the Police Pension and Lump Sum Scheme divisions of the Police Superannuation Scheme.

The Police Superannuation Board has determined a policy in respect of the calculation of the exit rate of return which is based on the actual investment returns as advised by Funds SA. These actual returns are smoothed to reduce any volatility that may occur in investment markets. The Board has determined that the exit rate of return be calculated as the average of the net rates of return declared over the previous two years, and the Year To Date annualized rate of return for each quarter (September, December January and March) as advised by Funds SA, reduced by one percentage point.

The Board reviews the exit rate of return on a quarterly basis to alleviate any significant fluctuations between the exit rate of return applied during a financial year and the crediting rate of return applied at the end of the financial year. The exit rate of return determined each quarter will apply for the whole period from the commencement of the financial year to the date of payment. The following table shows recent exit rates of return declared by the Board.

Exit Crediting Rates

Scheme	Mar 2000	Jun 2000	Sept 2000	Dec 2000
Pension	13.4%	12.7%	10.4%	8%
Lump Sum	13.4%	12.7%	10.6%	8.3%

Member Information

For information on superannuation contact the Police Superannuation Office. Group information sessions can be arranged upon request. Phone: 8204 2964 or 8204 2965. Fax: 8204 2303. E-mail: polsuper@adelaide.on.net.

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