Police Superannuation Lump Sum
Scheme – benefits overview
Scheme Membership
Members of the Lump Sum Scheme include:
- Police officers who commenced employment on or after 1 June 1990 and on or before 3 May 1994;
- Police officers who commenced employment as cadets on or before 31 May 1994; and
- Ex-STA transit officers appointed as police officers on or before 31 March 1995.
Retirement benefits
Members of the Lump Sum Scheme are eligible to receive the following benefits from age 50 onward:
- a lump sum retirement benefit which is a defined multiple of annual superannuation salary;
- a lump sum productivity benefit which is a defined multiple of annual superannuation salary based on completed months of membership occurring after the date joined the scheme to the date of separation;
- a cash withdrawal equal to the balance of their voluntary contribution and/or roll over account at the date of payment.
Total and permanent invalidity benefit
Retirement on the grounds of invalidity and total incapacity is determined by the applicant’s level of incapacity for all kinds of work, both inside and outside SAPOL, being 60 per cent or more and likely to be permanent.
In the event of retirement on the grounds of total and permanent incapacity (prior to age 55) members of the Lump Sum Scheme are eligible to receive the following benefits:
- a lump sum benefit based on the defined multiple of annual superannuation salary that would have been payable at age 55;
- a lump sum productivity benefit as a defined multiple of annual superannuation salary based on completed months of membership occurring after the date joined the scheme to the date of separation;
- a cash withdrawal equal to the balance of their voluntary contribution and/or roll over account at the date of payment.
In cases in which members are in receipt of worker’s compensation payments, superannuation benefits are reduced by the amount of worker’s compensation payable.
Partial incapacity invalidity benefit
Retirement on the grounds of invalidity and partial incapacity is determined by the applicant’s level of incapacity for all kinds of work, both inside and outside SAPOL, being less than 60 per cent or not likely to be permanent.
In the event of retirement on the grounds of partial incapacity (prior to age 55) members of the Lump Sum Scheme are eligible to receive the following benefits:
- a lump sum benefit based on the accrued defined multiple of annual superannuation salary from the date joined scheme to the date of separation (minimum lump sum payable is two times annual superannuation salary with a lump sum of 5.45 times annual superannuation salary payable after 30 years’ membership);
- a lump sum productivity benefit as a defined multiple of annual superannuation salary based on completed months of membership occurring after the date joined the scheme to the date of separation;
- a cash withdrawal equal to the balance of their voluntary contribution and/or roll over account at the date of payment.
Temporary disability pension
Members of Lump Sum Scheme (prior to 55 years of age), who are temporarily or permanently incapacitated for work within SAPOL, have exhausted their sick leave and are not entitled to worker’s compensation payments are eligible to apply for a temporary disability pension.
The benefit payable as a temporary disability pension is equal to two thirds of the fortnightly superannuation salary payable to the applicant at the date of application.
Death benefit – spouse
Upon the death of a member of the Lump Sum Scheme, the following benefits are payable to a surviving spouse:
- a lump sum benefit as a defined multiple of annual superannuation salary (maximum lump sum of five times annual superannuation salary if member joined at age 25 or under);
- a lump sum productivity benefit as a defined multiple of annual superannuation salary based on completed months of membership occurring after the date joined the scheme to the date of death;
- a cash withdrawal equal to the balance of a voluntary contribution and/or roll over account (if applicable) at the date of payment.
For members of the Lump Sum Scheme, a surviving spouse is defined as:
- a lawful spouse who was the member’s lawful spouse at the date of death; or
- a putative de facto spouse as declared by the court.
Death benefit – eligible child/children
Upon the death of a member of the Lump Sum Scheme, a fortnightly pension benefit is payable to an eligible child or children. An eligible child is a child under 16 years of age, or a child who is over 16 years of age but under 25 years of age and a full-time student.
If a deceased member of the Lump Sum Scheme is also survived by a spouse, the pension benefits payable to an eligible child or children are paid in addition to the benefit payable to the spouse.
If the deceased member has an eligible child or children, but is not survived by a spouse, the following benefits are payable to the member’s estate:
- a lump sum benefit as a defined multiple of annual superannuation salary (maximum lump sum of two times annual superannuation salary)
- a lump sum productivity benefit as a defined multiple of annual superannuation salary based on completed months of membership occurring after the date joined the scheme to the date of death;
- a cash withdrawal equal to the balance of a voluntary contribution and/or roll over account (if applicable) at the date of payment.
Death benefit – estate
If a deceased member of the Lump Sum Scheme is not survived by a spouse or an eligible child, the following benefits are payable to the member’s estate:
- a lump sum benefit based on the accrued defined multiple of annual superannuation salary (maximum lump sum of seven times annual superannuation salary is payable after 35 years of membership)
- a lump sum productivity benefit as a defined multiple of annual superannuation salary based on completed months of membership occurring after the date joined the scheme to the date of death;
- a cash withdrawal equal to the balance of a voluntary contribution and/or roll over account (if applicable) at the date of payment.
In cases in which a member of the Lump Sum Scheme dies in the course of duty and is not survived by a spouse or an eligible child, a minimum lump sum of three times annual superannuation salary would be payable to the deceased member’s estate.
Withdrawal benefit – separation from SAPOL under age 50
Preservation option
For members of the Lump Sum Scheme who elect to preserve their accrued superannuation lump sum benefits, the following benefits will become payable from age 55:
- a lump sum benefit based on the accrued defined multiple of annual superannuation salary as at the date of separation;
- a lump sum productivity benefit as a defined multiple of annual superannuation salary based on completed months of membership occurring after the date joined the scheme to the date of separation.
Members of the Lump Sum Scheme who have a voluntary contribution and/or roll over account have the option to preserve the benefits with the Police Superannuation Scheme or roll over the preserved benefit to a complying fund of their choice.
Withdrawal option
For members of the Lump Sum Scheme who elect to take a withdrawal benefit, the following benefits are payable:
- a cash withdrawal benefit equal to the balance of their member contribution account at the date of payment;
- a lump sum productivity benefit as a defined multiple of annual superannuation salary based on completed months of membership occurring after the date joined the scheme to the date of separation;
- a lump sum Superannuation Guarantee (SG) benefit as a defined multiple of annual superannuation salary based on months of service since 1 July 1992.
The SG benefit is payable, in cash, if the benefit is less than $200. If the SG benefit exceeds $200, the benefit is compulsorily preserved and becomes payable, in cash, at age 55. For the 2004-2005 financial year, the SG benefit is based on 9 per cent of superannuation salary.
Lump Sum Scheme members who have a voluntary contribution and/or roll over account have the option to preserve the benefits with the Police Superannuation Scheme or roll over the preserved benefit to a complying fund of their choice.
