January 1999 Volume 80 Number 1 "serving the protectors"
Finance

Police Credit Union

Good Savings Habits to Assist your Child/Teenager

Coming into the New Year is often considered a good time to change old habits (especially financial ones) and turn over a new leaf. Similarly, it may also be a good time to look into establishing a good savings habit for your children. Often, with so many pressures on the modern parents, it’s easy to overlook this important rung in your child’s maturity. However, if you start early and teach your child the basics you will find they will be financially knowledgable and well equipped for the step into adulthood.

The secret behind the effective establishment of good money management skills for your child is to give him or her the responsibility of his or her own spending and saving, while providing assistance and guidance along the way. The following tips are designed to assist you with just that.

Ages 0 - 5

• Assist your child in identifying coins and counting money. The use of a moneybox (or similar) is helpful and your child can learn to count the total of their savings.
• Give your child small change to spend occasionally when going shopping. By giving them the money rather than purchasing the item yourself, they can begin to learn the value of money and wisely select their purchases.

Ages 6 - 10

• Give a weekly allowance to assist in teaching your child hands-on money management.
• Let your child save for and buy something they really want.
• Take two moneyboxes or containers and label them “Spend” and “Save”. Ask your child to contribute their allowance to each of the moneyboxes.
• When the “Save” container begins to build you can choose to open a savings account for them. The Police Credit Union has a Junior Savers Club that is ideal for this purpose.

Ages 11 - 15

• Take your child/teenager on shopping trips to teach them the cost of goods. They can also learn to place higher value on their priorities and will learn smarter shopping techniques.
• Help them set savings goals for something they really want such as a bike or game.
• Encourage your teenager to seek out odd jobs such as mowing lawns, washing the car or paper delivery to help them reach their savings goals.

Age 15 and over

• Discuss longer-term savings goals such as a car or stereo.
• Give your young adult a clothing allowance (beyond their regular allowance) so that they can learn to rationalize their options before purchase.
• Encourage your young adult to open a savings account and plan a budget. Your teenager can obtain a budget planner that can assist with this or, alternatively, open a Police Credit Union account by phoning 131 844.

To open a Junior Savers Club membership, obtain a budget planner or, for your teenager to open a general savings account, phone the Police Credit Union on 131 844, or drop in to one of our branches at Marion, Tea Tree Plus or Adelaide.

Police Super Update By Michael Hogg

Invalidity Benefits

The Police Superannuation Scheme provides valuable invalidity benefits for members who, through illness or injury, become permanently incapacitated for work within SAPOL.

An invalidity benefit becomes payable in the event that your employment with SAPOL terminates on the grounds of invalidity. Your employment with SAPOL can be terminated on the grounds of invalidity by:

a) the Governor or Minister terminating your employment on the grounds of invalidity; or

b) you resigning from SAPOL, on the grounds of invalidity, after satisfying the Police Superannuation Board, on the basis of medical advice, that you are incapacitated for work in your present position, within SAPOL, and there is no other position, within SAPOL or the SA Public Service, carrying a salary of at least 80 per cent of the salary of your present position, which could be made available to you. In addition you must have been on sick leave, worker’s compensation payments or a disability pension for at least 12 months.

The type of invalidity benefit payable for total and permanent or partial incapacity is determined by the Board on the basis of medical advice presented and your level of incapacity for all kinds of work (both inside and outside SAPOL) and the permanency of your incapacity.

Total and Permanent Invalidity Benefit

A total and permanent invalidity benefit is payable if your level of incapacity for all kinds of work (both inside and outside SAPOL) is 60 per cent or more and likely to be permanent. A member of the Pension Scheme would be entitled to a fortnightly pension benefit based on their age 60 entitlement. Members of the Lump Sum Scheme would be entitled to a lump sum benefit based on the their age 55 entitlement. In cases where members are in receipt of or entitled to receive workers compensation payments invalidity benefits are reduced by the amount of workers compensation payable.

Partial Incapacity Invalidity Benefit

A partial invalidity lump sum benefit is payable if your level of incapacity for all kinds of work (both inside and outside SAPOL) is less than 60 per cent or not likely to be permanent. Members of both the Pension and Lump Sum Schemes would be entitled to a lump sum benefit based on their length of membership. The 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.

Member Information

Should you require any information regarding your superannuation please 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