Pension Scheme

Pension increases in the Pension Scheme are based on the movement in the Consumer Price Index (CPI). The Australian Bureau of Statistics (ABS) provides the official adjustment figures by measuring inflation over a period of time. When the figures are released by the ABS, Super SA uses the All Groups Index for Adelaide to determine what adjustments need to be made.

Fortnightly incomes are adjusted twice a year, in April and October, to reflect any changes in the Consumer Price Index (CPI), all groups for Adelaide.

CPI rates for the last twelve years are:

SA Superannuants is an association of public sector retirees/employees providing representation and advocacy for members of the SA Public Sector superannuation schemes.

Eligibility for membership

For many years membership of the Association was restricted to members of the Pension Scheme but has, in recent years, been opened up to members of other SA Public Sector schemes. The Association speaks for all its members, those retired and those still at work.

Anyone receiving, or eligible to receive, a lifetime pension from the Pension Scheme, or members of other SA Public Sector superannuation schemes can join the Association.

With the Pension Scheme:

• Each pay your employer deducts any member contributions from your after-tax pay, and these contributions are paid into your Member Account.
• Contributing at your standard contribution rate (averaged over your membership until maturity) may maximise your benefits.
• NB: Your standard contribution rate can be found in your annual statement, and is usually between 5% and 7%.

In order to receive the maximum employer funded component of your retirement entitlement, you need to average your standard contribution rate for at least 30 years leading up to age 60. For further information please refer to the Pension and Lump Sum Schemes Points fact sheet.

With the Pension Scheme, you can grow your super by:

✔ Making regular before-tax (salary sacrifice) contributions – this will be directed into a Triple S account.
✔ Roll-in super from other funds
✔Potentially qualify for the Government’s Co-contribution scheme – this will be directed into a Triple S account.

The Pension Scheme closed to new members on the 30^th of May 1986.

The scheme is a defined benefit scheme. This means that most member will receive a defined pension in retirement. The amount of the pension will depend on the year of contributory membership and final salary.

As a Pension Scheme member, you’re entitled to Temporary Disablement (Income Protection) cover, Total and Permanent Disablement and Death benefits up to age 60¹.

If you salary sacrifice into a Triple S account, you’re also eligible to apply for additional units of Triple S Death and TPD cover.

¹If you become Totally and Permanently Disabled or die after age 60 a Retirement Entitlement will apply.

Your fortnightly income is adjusted twice a year, in April and October, to reflect changes in the Consumer Price Index (CPI), all groups for Adelaide.

¹The confirmation of entitlements letter is mailed to Superannuants living outside South Australia

The Pension Scheme is an untaxed fund. This means that the 15% contributions tax is not paid until the pension or benefits are paid.

Most Pension Scheme members qualify for a CPI indexed fortnightly income for life, which is determined independently of the rates of return achieved by the Scheme. The rates of return are relevant only if you take your entitlement before you qualify for a fortnightly income.

The return credited to the Pension Scheme is based on the earnings achieved by Funds SA, the Scheme’s investment manager.

Rates of return for the last ten years:

Due to the ongoing volatility of the financial markets, there may be relatively large variations in rates of return each year as seen above.

It’s important you are aware that the Pension Scheme is an untaxed scheme, which means returns are reported without taking tax into account. Most other funds are taxed funds and report their investment earnings after tax. You should always consider the impact of tax on returns when comparing Pension Scheme returns with that of other funds.

Pension Scheme returns are reported less investment fees.