Redundancy

Redundancy

Redundancy occurs when your employer terminates your employment, or when you accept an offer of a redundancy package.

Redundancy benefits are also payable if you are retired on inefficiency grounds, as a result of having lost essential qualifications or, in restricted cases, on the termination of contracts.

Your redundancy options

 

Preserve your total benefit

You can preserve your entire benefit in the CSS for payment at a later date. Taking this option can sometimes result in a higher pension benefit when you eventually claim your benefit.

If you have reached minimum retiring age (usually age 55), you can claim your deferred benefit* the day after you preserve it, if you wish. However, any lump sum payments of your member and productivity components would be subject to any SIS restrictions.

* Your deferred benefit will generally be a standard CPI-indexed pension, with your member and productivity (if any) components taken as a once off lump sum, a non-indexed pension, or a combination of lump sum and non-indexed pension.

Lump sum (or rollover) with no pension

You can elect to take your entire benefit# as a lump sum.

If you are under preservation age, the amount of the lump sum that you can take as cash is limited to a refund of your  member component up to your SIS Upper Limit.

If you have not reached your preservation age and have not retired from the workforce, you are restricted to a cash lump sum of your SIS Upper Limit.

In both these circumstances, you would have to rollover the remainder of your total lump sum to a rollover fund.

You can also roll over your entire lump sum to a rollover fund if you wish.

# equal to 3.5 times the total of your basic contributions plus interest, plus any supplementary contributions and interest, and the productivity component.

Maximum pension

This option is only available if you are over age 55.

This option gives you a standard CPI-indexed pension together with an additional non-indexed pension funded by your member and productivity components. As there is a limit on the amount of non-indexed pension you can take, we will pay any excess member and/or productivity component as a lump sum, subject to cashing restrictions^.

Maximum pension, lump sum of productivity

This option gives you a standard CPI-indexed pension, an additional non-indexed pension funded by your member component and a lump sum of your productivity component. As there is a limit on the amount of non-indexed pension you can take, we will pay any excess member component as a lump sum in addition to your productivity component, subject to cashing restrictions^.

Standard pension, lump sum of member and productivity

This option gives you a standard CPI-indexed pension plus a lump sum of your member and productivity components, subject to cashing restrictions^.

Postpone all or part of your benefit.

This option is only available if you are aged 55 or more and you do not intend to retire from the workforce.

You can choose to:

  • postpone the receipt of your CPI-indexed pension and productivity component and take as much of your member component as SIS allows immediately as a lump sum (the balance will be paid to a rollover fund); or
  • postpone the receipt of your CPI-indexed pension and the productivity component and take your member component immediately as a non-indexed pension; or
  • postpone your total benefit.

 

You can claim your postponed benefit at any time provided you have left the workforce. You cannot however, postpone your benefits beyond your 65th birthday.

Your benefit will be paid with effect from the date that you provide the us with written advice that you have left the workforce.

^The Superannuation Industry (Supervision) Regulations 1994 determines how much of your lump sum benefit can be accessed as cash.

If:

  • you have reached your preservation age and permanently retired from the workforce, or;
  • you have reached age 60 and no longer work for the employer who contributed to the CSS on your behalf, or;
  • you have reached age 65,

you can access your entire lump sum benefit as cash. However, if you have not met one of the above conditions, your access to a cash lump sum will be restricted. The amount that can be accessed as cash - your 'unrestricted component' - will vary depending on your situation, and is shown in your benefit estimate. Any part of the lump sum exceeding the unrestricted component is classed as 'compulsory preserved' and must be paid to a regulated super fund.

You should contact us on 1300 000 277 to obtain a benefit estimate if you haven't already.

Any accrued surcharge debt you may have is recovered when your benefit is paid.

Find out more in the product disclosure statement or Redundancy fact sheet.

 

 

Where can I get more information?

Read the CSS Product Disclosure Statement or contact us on the information below.

EMAIL   members@css.gov.au

PHONE 1300 000 277

FAX       02 6272 9612

MAIL      CSS GPO Box 2252 Canberra ACT 2601