Member choice is now available to members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation defined benefit Scheme (PSSdb) and the Public Sector Superannuation accumulation plan Scheme (PSSap). However, there are both benefits to be gained and pitfalls to be avoided when choosing to leave any of these schemes. You really need the advice of a skilled professional when making these sometimes complex decisions.

Getting it right - could pay big dividends. Getting it wrong - could prove very costly!
What benefits one member could be detrimental for another, even if they are both in the same fund. Many factors influence a successful outcome: age, length of service, length of prospective service, account balances, salary increases, contribution levels, the Consumer Price Index (CPI) and the earning rate of the fund.

For example, people in the PSSdb who have a while to go until retirement and an employee component close to 50% of the defined lump sum, will find leaving the PSSdb and switching to the PSSap could pay huge dividends. In comparison, someone in the PSSap who switches out and goes to a private fund, could face a potential drop in employer contribution from 15.4% to 9%. Other important issues to consider when switching are temporary and permanent invalidity, and death benefits. All these issues need a closer look.

Wayne Lear CFP™ SSA™ has over 25 years of experience in helping Federal Government employees make confident decisions around their superannuation choices. He is highly regarded as one of the preeminent experts on all three schemes. Make an informed decision by seeking Wayne's advice.