Exit
crediting rate – Police Superannuation Scheme
For a member of the Police Superannuation Scheme who, under age 50,
resigns from SAPOL during a financial year, a rate of return is used
to calculate a cash withdrawal and/or preserved lump sum benefit payable
on his or her 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 reviews exit rates on 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 the following policies to calculate the
exit crediting rates, which are applied to member accounts if a member
resigns from SAPOL, under age 50, and elects to withdraw a benefit
from the scheme.
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 – which have been applied to the member contribution
accounts of members who have resigned from SAPOL, under age 50, during
2004-2005 and have elected to withdraw a benefit from the scheme.
MEMBER CONTRIBUTION ACCOUNTS
EXIT CREDITING RATES 2004 |
| SCHEME |
AUG |
SEPT |
OCT |
NOV |
DEC |
| PENSION |
2.0% |
5.7% |
8.3% |
9.1% |
10.9% |
| LUMP SUM |
2.1% |
5.8% |
8.4% |
9.2% |
11.0% |
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 rollover accounts
(rollover 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.
The following table shows recent exit crediting rates – declared
by the Board – which have been applied to the voluntary contribution
accounts of members who have resigned from SAPOL during 2004-2005
and have elected to withdraw a benefit from the scheme.
VOLUNTARY CONTRIBUTION AND ROLLOVER ACCOUNTS
EXIT CREDITING RATES 2004 |
| SCHEME |
AUG |
SEPT |
OCT |
NOV |
DEC |
| PENSION |
-10.0% |
1.0% |
8.9% |
11.1% |
16.7% |
| LUMP SUM |
-10.0% |
1.0% |
8.9% |
11.1% |
16.7% |
