Redundancy

Redundancy occurs when your employer terminates your employment, or when you accept an offer of a redundancy package. In these situations, you may be entitled to a redundancy benefit from PSS.

You may also be entitled to one if you are retired on inefficiency grounds, as a result of having lost essential qualifications or, in restricted cases, on termination of contracts. A redundancy benefit is not payable following completion of a fixed-term contract, however a resignation benefit may be payable. But you may be eligible to a redundancy benefit if you are a PSS preserved benefit member due to ceasing your membership.

Please read our Redundancy [PDF 410 KB] factsheet to learn more about your options.

Redundancy options

Which means

1. Preserve your total benefit in PSS

You preserve your total benefit in PSS for payment at a later date; your preserved member and productivity components grow with scheme earnings and your employer component grows with CPI; and you can invest your member and productivity components in the Cash Investment Option if you wish. You can claim your preserved benefit when you permanently leave the workforce after reaching age 55, or if you change employers at age 60 or after.

You can take your preserved benefit as a lump sum, CPI indexed pension or combination of both these benefit options.

2. Take part of your benefit as a lump sum and preserve your remaining benefit in PSS (available to members who joined before 1 July 1999 only)

You take part of your benefit as a lump sum and preserve the rest in PSS; your preserved member and productivity components grow with scheme earnings and your employer component grows with CPI.

3. Take a lump sum only

You may no longer be able to receive your total benefit as a lump sum if you have not reached preservation age. This is because as an age retiree you cannot take more of your final benefit accrual that is permitted to be paid in cash (SIS upper limit) under the SIS Act as a lump sum. The balance must be preserved in the PSS. If you have been retrenched, you must roll over or preserve any amount that exceeds your SIS upper limit.

4. Take a pension only

You convert your total benefit to a CPI-indexed pension which is payable for life and indexed twice each year. Reversionary benefits are payable  to your eligible spouse and children if you die.

5. Take part of your benefit as a pension and part as a lump sum (for members who joined before 1 July 1999 only)

You take your  benefit as a CPI indexed pension and a lump sum; some restrictions apply if you have not reached your preservation age; reversionary benefits are payable  to your eligible spouse and children if you die.

6. Transfer your benefit to another eligible super fund (this is not a rollover)

You elect to pay a transfer value of your total PSS benefit (less any surcharge debt) to another eligible super fund if you become employed with an employer that participates in an eligible super scheme.

 Any accrued surcharge debt you may have in PSS will be recovered before your benefit is paid to you.

Where can I get more information?

Read the PSS Product Disclosure Statement or contact us using the information below.

EMAIL:   members@pss.gov.au

PHONE: 1300 000 377

FAX:       02 6272 9613

MAIL:     PSS GPO Box 2252 Canberra ACT 2601