Exit crediting rate – Police Superannuation Scheme

For members of the Police Superannuation Scheme under age 50, who resign from SAPOL during a financial year, a rate of return is used to calculate the cash withdrawal and/or preserved lump sum benefit payable on the member’s behalf. 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. Investment returns achieved by Funds SA are used by the Police Superannuation Board to calculate exit rates. The Board recently changed its policy of reviewing exit rates on a quarterly basis to a monthly 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 month will apply for the whole period from the commencement of the financial year to the date of payment.

The Board has determined policies in the determination of exit rates to be applied to the following member accounts if a member resigns from SAPOL, under age 50.

Member contribution accounts

The Board has determined the following policy for exit crediting rates to be applied to members’ contribution accounts (member contributions plus accrued interest). The exit crediting rates are calculated as the average of the net rates of return (money weighted return net of the Board’s administration costs) over the previous two years and the year-to-date annualized rate of return for each month (reduced by one percentage point), as advised by Funds SA.

The following table shows recent exit crediting rates declared by the Board, and applied to member contribution accounts.

Exit crediting rates for member contribution accounts

Scheme	December 2002	March 2003	April 2003	May 2003
Pension	-3.7%	-4.3%	-2.6%	-1.6%
Lump Sum	-3.7%	-4.3%	-2.6%	-1.6%

Voluntary contribution accounts

The Board has determined the following policy for exit crediting rates to be applied to voluntary contribution accounts (voluntary member contributions plus accrued interest). The exit crediting rates will be the year-to-date annualised rate of return for each month during the financial year, as advised by Funds SA.

Roll over accounts

The Board has determined the following policy for exit crediting rates to be applied to roll over accounts (roll over benefits transferred from another fund or employer plus accrued interest). The exit crediting rates will be the year-to-date annualized rate of return for each month during the financial year, as advised by Funds SA.

Crediting rates for voluntary contribution and roll over accounts

Scheme	December 2002	March 2003	April 2003	May 2003
Pension	-7.8%	-9.6%	-4.6%	-1.6%
Lump Sum	-7.8%	-9.6%	-4.6%	-1.6%

Member information

For information regarding superannuation, contact the Police Superannuation Office or refer to the website above. Access to the website is now available on the SAPOL Intranet under Services, Business Service, FMSB. 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.