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 |
Aug 2003 |
Sept 2003 |
Oct 2003 |
Nov 2003 |
| Pension |
8.1% pa |
3.2% pa |
4.3% pa |
2.5% pa |
| Lump Sum |
8.2% pa |
3.3% pa |
4.4% pa |
2.6% pa |
Voluntary contribution and roll-over 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) and 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.
Exit crediting rates for voluntary contribution and roll-over accounts
| Scheme |
Aug 2003 |
Sept 2003 |
Oct 2003 |
Nov 2003 |
| Pension |
31.4% pa |
16.8% pa |
20% pa |
14.5% pa |
| Lump Sum |
31.4% pa |
31.4% pa |
20% pa |
14.5% pa |
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.
