May 1999 Volume 80 Number 5 "serving the protectors"
Finance

Police Credit Union

Do you have a busy lifestyle?

If you answered “Yes”, you probably typify the majority of Australians today.

There would be very few people who would be able to say that they have enough time to achieve every goal they set themselves. These days most people have such a busy lifestyle that they are pulled from pillar to post, trying to juggle work commitments with a full family life while still leaving enough time to relax, unwind and enjoy their limited leisure time. So, if faced with a high-pressure existence, why would we want to run around each month paying accounts with more than one creditor?

Not only do we waste valuable time trying to organise payment of accounts which are scattered around various financial institutions, often the accounts, especially retail credit cards or finance company lines of credit, run at high interest rates.

The answer that provides a convenient, one-stop, low-interest, single repayment facility is a debt consolidation loan.

Generally speaking, there are two types of debt consolidation loans available.

• If you have those nagging small amounts outstanding on credit cards, a personal loan would probably be the best option. Financial institutions will generally offer personal loans at a cheaper rate if you are prepared to offer your motor vehicle as security for the loan. Once your loan is funded, it is best to close off all the credit cards that have been paid out to avoid the same trap again. If you still want the security of knowing that you have immediate access to credit, perhaps leave one credit card open. It would be advisable though to consider reducing the limit on the card to a more manageable level, so that it is purely a card to fall back on for emergencies, or for unforeseen or unexpected expenses.
  
  
• If your outstanding debts are of a larger nature - for example you may have a car loan, a home loan, credit cards, and store accounts - it may be more beneficial to consider making the equity you have built up in your property work for you. Obtaining a mortgage secured loan can do this. The benefit of having a mortgage loan is that it can generally be taken over a longer term (up to 30 years). This gives you the flexibility of making lower repayments while, for example, the children are growing up and you need more immediate cash in hand.

There are various types of mortgage loans available with differing features that you need to weigh up against your needs. You may need to ask whether you can make additional repayments off your mortgage without penalty, whether you can redraw any additional payments made on your mortgage, at what fee, and whether it is possible to run a Visa and cheque book from your mortgage loan.

Once you have consolidated your commitments, make sure your new loan is serviced directly by payroll deduction and you will be able to put your feet up, relax and enjoy a more simplistic lifestyle.

If you would like to enquire about a consolidation loan or mortgage secured loan call the Police Credit Union on 131844 or 8208 5750 (direct to loans).

Fees & Charges Apply. Full details of the relevant Terms & Conditions are available upon application. Loans are subject to the Credit Union’s normal lending criteria.

Police Super Update

Exit Rate of Return
By Michael Hogg

If you resign from SAPOL during a financial year you have the option to elect to preserve a superannuation benefit (pension or lump sum) until age 55 or take a withdrawal benefit. If you elect to take a withdrawal benefit you will be entitled to receive, in cash, your contribution account (your personal contributions plus interest). In addition you will also be entitled to a preserved employer lump sum benefit (under the Superannuation Guarantee Charge Commonwealth legislation).

A rate of return is applied to your contribution account to calculate the amount of interest due to you from the commencement of the financial year up to the date of payment. This rate of return is known as an exit rate of return.

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.

The Police Superannuation Board has determined a policy in respect of the calculation of the exit rate of return which is based on the actual investment returns as advised by Funds SA. These actual returns are smoothed to reduce any volatility that may occur in investment markets. The Board has determined that the exit rate of return be calculated as the average of the net rates of return declared over the previous two years, and the Year To Date annualised rate of return for each quarter (September, December January and March) as advised by Funds SA, reduced by one percentage point.

The Board reviews the exit rate of return on a quarterly basis to alleviate any significant fluctuations between the exit rate of return applied during a financial year and the rate of return applied at the end of the financial year. The exit rate of return determined each quarter will apply for the whole period from the commencement of the financial year to the date of payment. The table below shows recent exit rates of return declared by the Board.

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