Your defined benefit formula is:
Your final average salary X accrued benefit multiple = your benefit
Because PSS provides you with a super benefit defined by a set formula, your PSS scheme is different to more common ‘accumulation’ schemes or funds.
What is my final average salary?
It is a factor used to calculate your final PSS benefit.
Your final average salary (FAS) is the average of your superannuation salaries on your three birthdays before leaving PSS:
- if you work part time, your equivalent full-time salary is used in the calculation
- if you are involuntarily retired (were retrenched or made redundant), the calculation of your final average salary differs to the definition above.
What is my accrued benefit multiple?
It is a factor used to calculate your final PSS benefit; it is influenced by your rate of super contributions and your length of PSS membership. The more you contribute, the more your accrued benefit multiple will grow.