September 1998 Volume 79  Number 9 "serving the protectors"
Police Super Update
By Michael Hogg

What is a Defined Benefit Superannuation Scheme?

As a member of the Police Superannuation Scheme (Pension or Lump Sum) and the Police Occupational Superannuation Scheme (POSS) you are a member of a defined benefit superannuation scheme. What does that mean?

A defined benefit superannuation scheme is a scheme which provides superannuation benefits based on length of membership and salary at the date of retirement. Defined superannuation benefits are not affected by investment returns or crediting interest rates.

The pension, lump sum and POSS schemes provide defined superannuation benefits for you upon age retirement (at any age from age 50 onwards) and invalidity or your spouse, children or estate upon death. The benefits payable to you will be based on your length of membership of the superannuation scheme and the superannuation salary payable on your behalf (based on highest rank and banding in a permanent position) at the date of payment of the benefit.

For example, if you joined the pension or lump sum scheme at age 20 you will have the option to retire at age 50 and receive a defined lump sum benefit of 5.45 times the annual superannuation salary payable on your behalf at age 50.

If you joined the pension scheme at age 30 or under you will have the option to retire at age 55 and receive a defined pension benefit of 51.8 per cent of the fortnightly superannuation salary payable on your behalf at age 55 (66.6 per cent at age 60). Upon retirement at any age on or after age 55 you will have the option to commute any amount up to 100 per cent of your pension into a lump sum.

If you joined the lump sum scheme at age 25 or under you will have the option to retire at age 55 and receive a defined lump sum benefit of six times the annual superannuation salary payable on your behalf at age 55 (seven times at age 60). In addition to the defined benefits payable from the pension or lump sum schemes you will also receive a defined lump sum benefit from the POSS scheme.

Member Information

For information regarding your superannuation, contact the Police Superannuation Office on 8204 2964 or 8204 2965 (Fax 8204 2303). Group information sessions can be arranged upon request.

Web Site http://www.pubsecsup.sa.gov.au