February 2002 Volume 83 Number 3 "serving the protectors"
Police Super Update www.policesuper.sa.gov.au
By Micheal Hogg

Exit Crediting Rate – Police Superannuation Scheme

f you are a member of the Police Superannuation Scheme 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 member contribution account (your personal contributions plus accrued interest). In addition, an employer lump sum equivalent to the Commonwealth’s Superannuation Guarantee will be preserved.

If you elect to take your contribution account, 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 crediting rate.

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

Exit Crediting Rates

Scheme	Mar 2001	Jun 2001	Sept 2001	Dec 2001
Pension	7.7%	9.5%	-3.9%	5.7%
Lump Sum	8%	9.8%	-4.0%	5.6%

Member Information

For information regarding superannuation contact the Police Superannuation Office or refer to the website at the top of the page. Group information sessions can be arranged upon request.

 
Police Superannuation office:
Ground floor, 30 Flinders St, Adelaide, 5000.
Postal Address: GPO Box 1539, Adelaide, 5001.
Internal postcode: 128.
Phone: 8204 2964 or 8204 2965.
Fax: 8204 2303.
E-mail: admin@policesuper.sa.gov.au
SAPOL Intranet: Police Superannuation,
Services, Business Service, FMSB.

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