Account based income stream

Introducing new options to add additional money into CSCri

CSCri is an account-based income stream product offered through PSSap to CSS, PSS and PSSap members.

CSCri now provides improved flexibility to members who want to receive regular tax effective income payments through the introduction of:

  • A rollover option that allows prospective CSCri members to use superannuation savings from outside the Government super environment (such as a rollover from another superannuation fund) to commence a CSCri income stream; and
  • a restart option that allows current CSCri members to restart a CSCri account with additional money (eg, from the sale of an investment property, an inheritance or other windfall, or from other superannuation savings).

These changes allow all CSS members increased flexibility in planning and managing their retirement within the Government super environment.

If you have a lump sum to invest or super outside CSS, there's different ways to get those savings in retirement - an account-based income stream or annuity, just to name two.

You may even get a mix of income from both within and outside of super.

Account-based income stream

An account-based income stream is a popular option if you want to receive regular tax-effective income payments from your super savings.

Benefits can include:

  • regular income payments from your super savings
  • tax-free income payments and eligible withdrawals from age 60
  • investment choice
  • tax-free returns (except for transition to retirement)
  • control of your money with ad hoc withdrawals.

Account-based income streams are sometimes called pensions. But they're different, for example, to CPI-indexed pensions available in CSS.

Account-based means your superannuation income is paid until your account balance is zero. As your balance is invested in one or more investment options, there's the potential for capital growth over an investment horizon that could last 20 years or longer.

Income stream for CSS members

CSS members can take up an account-based income stream in the Australian Government super environment. It's called Commonwealth Superannuation Corporation retirement income (CSCri). CSCri is offered through PSSap (the Australian Government's accumulation super scheme for eligible public servants). CSCri is only for employees of the Australian Government or other participating employers to assist them in meeting their retirement income needs.

Start today

See the CSCri website to open a CSCri account.

More information

Eligibility

To open a CSCri account, you must be a CSS, PSS or PSSap member with a minimum starting balance of $20,000 who will either be:

  • permanently retired from the workforce, having reached preservation age
  • in new employment on or after age 60
  • age 65 or older.

Access to money

Your money is not locked away if you choose to roll some or all of your super into CSCri. Arrangements are flexible, so you change them to suit your changing needs:

  • Need to quickly access an ad hoc amount? You can make withdrawals at any time (unless you have a transition to retirement account because you’re under age 65 and still work).
  • Prefer to have investment choice of your account balance? You can choose from one or a mix of four investment options in CSCri and change at any time.
  • Want to increase or decrease how much income you get or the frequency of your income payments? You can change your preferred payment amount (within annual limits), your payment method if your balance is invested in more than one option and if your payments are monthly, quarterly, half yearly or annually.
  • Prefer to manage your account online? Use Member Services Online.

Tax effective

Keeping your savings invested in super at retirement and drawing a regular income stream can be a very tax effective strategy, helping the longevity of your savings.

If you are age 60 and over:

  • your income payments and ad hoc withdrawals are paid tax free.

If you are age 60 and under:

  • PAYG tax is withheld from the taxable component of your income payments
  • tax on ad hoc withdrawals is based on your tax components.

At any age:

  • your investment returns in CSCri are tax free (except for transition to retirement)

Note, however, tax in super can be complex and is subject to change. That’s why we recommend you consider professional advice for your financial objectives, situation and needs.

Key features

Item 

Feature

Product name

Commonwealth Superannuation Corporation retirement income (CSCri)

 

Type of income stream

Transition, account-based

 

Minimum investment

$20,000 in your CSCri account (the minimum balance in PSSap is $1,000 for contributing and ancillary members and $5,000 for non-contributors)

 

Restart option

You can restart your CSCri with additional money

You should seek advice or make yourself aware of any impacts on Centrelink or other government payments

 

Other contributions

Not allowed (but you can top-up your account balance via the Restart option or contribute voluntarily into PSSap)

 

Income payments Monthly, quarterly, half yearly or annually
 
 
Annual income amount

Choose between minimum and maximum amounts

 

Withdrawals

Available at any time (but not in transition to retirement income streams)

 

Taxation

Tax-free investment returns (except for transition to retirement)

Age 60 and over
Tax-free income payments

Age 60 and under
Concessional tax on income payments

Further information is contained within the CSCri Product Disclosure Statement

 

Asset test

100% assessed under the Assets TestVisit the Centrelink website for more about the Assets Test

 

Income test

Assessed against the Income Test (Centrelink will apply deductible amount). Visit the Centrelink website for more about the Income Test

 

Investment options

Choose one or a mix of:

 

Competitive fees

Administration fee: $30 per month ($360 per year)
Exit fee: $36 per withdrawal (not applicable to regular income payments)
Investment switches: Nil for the first two (2) switches in any financial year. Additional switches are $20 each
Indirect cost ratio: estimated at 0.14% - 0.85% per annum depending on the investment option chosen.


Other fees and costs also apply, including buy-sell spreads and other activity fees. For full details refer to the 
CSCri Product Disclosure Statement

Personal financial advice

Access to fee for service, no commission personal financial advice for your individual situation and goals, provided by Industry Fund Services

 

Beneficiary nomination

Reversionary, binding or non-binding

 

Keeping you informed

Member Statement including confirmation of next year’s payments
Schedule for Centrelink or Department of Veterans’ Affairs
PAYG Payment Summary

Product Disclosure Statement

Read the CSCri Product Disclosure Statement for full details including:

  • about CSCri
  • key features and benefits
  • how the CSCri works and your options
  • investment options and risk
  • fees and other costs
  • how retirement income streams are taxed
  • nominating a beneficiary
  • how to open and keep track of your account.

Financial advice

We encourage you to first speak with a financial planner to ensure this transition strategy is appropriate for your needs, circumstances and retirement planning goals.

See financial advice to learn about the personal financial advice service offered to CSS members by Industry Fund Services.