Navigating redundancy
A redundancy, whether voluntary or involuntary, can significantly impact your super and insurance cover. Understanding your options is essential to making the right decision for your needs.
Fund rules differ
Select your fund to view the details
- CSS
- DFRDB
- MilitarySuper
- PSS
Eligibility
You will be eligible to receive a Redundancy Benefit if you are a PSS member and:
- your employer makes you redundant
- you accept an offer of a redundancy package from your employer
- you are dismissed on grounds of inefficiency
- you elected to cease PSS membership, and remained in Australian Government employment, but are later made redundant by your employer before reaching your minimum retirement age.
If you finish work with your current employer and start shortly after with another employer covered by PSS, you may not be eligible.
You will not be eligible for redundancy benefits if you work for an Australian Government agency that has its functions transferred through a Machinery of Government change, and you remain employed by the new entity. For more information contact your HR or call us 1300 000 377.
What to expect
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Before offer
Your employer may contact you with an expression of interest, but redundancy can also be involuntary. To estimate your PSS benefits before receiving a formal offer from your employer, log into CSC Navigator and use iEstimator.
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Formal offer
After you authorise your employer to contact us, they will contact us for a benefit estimate, which typically returns within 5 business days.
Take some time to read your estimate and review the Redundancy Benefit Application (SSR1) and Redundancy factsheet. Now might be a good time to seek financial advice to discuss your options. You can book an appointment to see one of our Financial Planners* on 1300 277 777.
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Date of exit
Once you decide on your super options, you can download and complete the Redundancy Benefit Application (SSR1) and submit to your employer within 90 days of ceasing work.
Your employer will send us your completed application and departmental report to us for processing.
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Benefit paid
Your application generally takes 3-4 weeks to process from your redundancy date, or the date we receive your completed form. We will inform you of your entitlements and the expected payment date.
If you’ve elected to receive a pension, your pension entitlement starts the day after you exit and may include a back payment.
Your redundancy options
Depending on your circumstances and the age, you may be able to choose one of the following options:
Preserve your total benefit
You can preserve your benefit in PSS for later payment, usually upon retirement from the workforce after reaching age 55.
While preserved, your employer component accrues in line with the Consumer Price Index (CPI), and your member and productivity components accrue at the fund’s earning rate. As a Preserved Benefit member, you may choose the Cash Investment Option for your taxed accumulation components (member and productivity). If you do not make a choice, we will continue to invest these components in the Default Fund.
For more information about the Cash Investment Option, please see the PSS Product Disclosure Statement.
When you are eligible to claim your preserved benefit, any lump sum will be paid in line with SIS regulations. For certain types of Preserved Benefit, you will need to supply certified copies of documents that establish your identity. Details of the number and types of documents required are on the relevant application forms.
Take part of your benefit as a lump sum and preserve the balance
This option is not available if you joined PSS after 1 July 1999 and:
- you are under the age of 55; or
- you are between 55 and 60 and have not permanently left the workforce.
For more information, please refer to SIS upper limit section below.
You can elect to take part of your benefit as a lump sum and preserve the balance in PSS. However, if you have not reached your minimum retiring age (generally 55) at the time of your retrenchment – the lump sum that you can take is limited to the lesser of:
- your member contributions and fund earnings; or
- your member contributions and fund earnings up to your SIS upper limit.
If you are aged between 55 and 60 and have not left the workforce, your lump sum is limited to a refund of your member component up to your SIS upper limit.
Your employer component increases each year in line with the CPI.
When you are eligible to claim your Preserved Benefit, any lump sum will be paid in line with SIS regulations. If you take any part of your benefit and preserve the balance in PSS, you will not have the option of taking a PSS pension when you claim your Preserved Benefit.
Take a lump sum only
You can elect to take your entire benefit out of PSS as a lump sum benefit.
If you are between age 55 and 60 and have not left the workforce, the cash lump sum immediately payable is limited to a refund of your member component up to your SIS upper limit. You must rollover the compulsory preserved component of your lump sum to a rollover institution. You can also rollover your entire lump sum to a rollover institution if you wish.
Take a pension only
You can convert your entire PSS benefit to a CPI-indexed pension, which is payable for life.
Reversionary benefits may be payable to eligible spouses and children in the event of your death, see Death and Invalidity Benefits.
Pension only, with a transfer value amount paid after 31 December 1995
You can elect to receive your benefit as a pension, except for any transfer value amount paid after 31 December 1995.
The transfer value amounts paid to PSS after 31 December 1995 are not included in the calculation of your final benefit accrual and cannot be converted into pension.
If you are under preservation age you need to choose if this transfer amount remains preserved in the PSS scheme, or to have it transferred to another complying superannuation scheme, rollover fund or deferred annuity scheme.
Please note
Even though you will have a transfer amount preserved within PSS you are ineligible to re-join the scheme. The preserved balance amounts relate solely to your ATO co-contributions or amounts that you have previously elected to transfer to PSS from other superannuation funds which were unrelated to your PSS Defined Benefit accruals.
Reversionary benefits may be payable to eligible spouses and children in the event of your death, see Death and Invalidity Benefits.
Take part of your benefit as a pension and part as a lump sum
You can take your benefit as a combination of CPI-indexed pension and lump sum. However, if you have not reached your minimum retiring age (generally age 55) at the time of your retrenchment, the lump sum you can take at retrenchment is limited to the lesser of:
- your member contributions and fund earnings; or
- your SIS upper limit.
If you have reached your minimum retiring age your lump sum is limited to 50% of your total benefit.
If you are between age 55 and 60 and have not left the workforce, the cash lump sum immediately payable is limited to a refund of your member component up to your SIS upper limit.
You must rollover any compulsory preserved component of your lump sum to a rollover institution.
Reversionary benefits may be payable to eligible spouses and children in the event of your death, see Death and Invalidity Benefits.
You can arrange to have a transfer value paid to another eligible scheme (this is not a rollover)
If you start work with an employer that participates in an eligible superannuation scheme and you become a member of that scheme, you may pay a transfer value of your total benefit to that other scheme, in exchange for that scheme’s benefits. This is providing you have not taken a refund of your member component.
Eligible superannuation schemes include the following:
- AV Super (previously known as the CAA Staff Superannuation Fund)
- Defence Force Retirement and Death Benefits Scheme
- Northern Territory Government and Public Authorities Superannuation Scheme
- Parliamentary Contributory Superannuation Scheme
- QSuper
- Queensland Electricity Supply Industry Superannuation Scheme
- Queensland Local Government Employees Superannuation Scheme
- Queensland Parliamentary Contributory Superannuation Scheme
- UniSuper – Accumulation Plan 2.
You can combine your final benefit accrual with another concurrent membership. If, at the time of retirement, you are also a PSS member in respect of another (concurrent) period of employment, you can elect to combine your benefit accrual with the other PSS membership. This is only possible if the combination does not exceed your maximum benefit limit (MBL).
For more information on MBLs refer to the maximum benefit limits (MBL).
The right option for you
Ceasing employment is a significant event that can shape your financial future. It’s crucial to make informed decisions. We recommend consulting a licenced Financial Planner.
Our authorised Financial Planners* can work with you to tailor a financial plan that supports your retirement goals. Advice is fee-for-service, which means you’ll get a fixed quote up front. There are no obligations, commissions or hidden fees. For more information visit Financial planning.
For information about your PSS or redundancy options, call 1300 000 377 or email members.aps@contact.csc.gov.au
Understanding your options when you leave the military can make a real difference to your super. Whatever you choose may have long-term implications. To find out more about your redundancy option, please read our Application for Benefits on retrenchment.
We're here to help.
Redundancy can be complex and stressful. We understand that and we're here to guide you through the whole process. Give us a call on 1300 006 727 to discuss your options.
As a PSS member you have 3 months before or after your cessation date to submit your redundancy benefit application.
Failure to submit your benefit application within this timeframe may result in your benefit being treated as unclaimed money and paid to the Australian Taxation Office (ATO).
Note: If you’ve been on extended sick leave, you may be eligible for invalidity retirement.
Before accepting a redundancy, please speak with your employer about being assessed for invalidity benefits instead.
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Receive an offer
Your employer will reach out to you with either an expression of interest or offer of redundancy, although sometimes the redundancy may be involuntary. At this time, they might also provide you with a severance payout estimate. This is separate to your redundancy entitlements from CSC – these will be outlined in a separate benefit estimate.
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Get a benefit estimate
Your redundancy benefit from CSC could include a lifetime pension, lump sum or a combination of both.
Your employer will contact us for a benefit estimate of your entitlements after you give them authority to request it on your behalf. The benefit estimate will be returned to your employer generally within 5 business days.
Note: If you don’t receive a benefit estimate before you cease employment, you should speak with your personnel section as soon as possible.
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Consider your options
Take some time to read your estimate and review the redundancy benefit application and factsheet. Now might be a good time to seek financial advice to discuss your options. You can book an appointment to see one of our Financial Planners* on 1300 277 777.
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Submit your benefit application
Once you’re ready to make a decision about your super options, you can download your redundancy benefit application and submit to formsandapplications@csc.gov.au or the postal address listed on the form. Your application can be submitted up to 3 months before your cease date.
Don’t forget to include a Tax File Number (TFN) Declaration form if you’re claiming a pension. You can download this form from ato.gov.au.
Your benefit application generally takes 15 business days to process from the later of your redundancy date, or the date your completed form is received by CSC, but in peak periods it may take longer. Once it’s finalised, we’ll advise you of your entitlements and the expected payment date.
Redundancy application form
More information
Navigating redundancy
A redundancy, whether voluntary or involuntary, can significantly impact your super and insurance cover. Understanding your options is essential to making the right decision for your needs.
*Our authorised financial planners are authorised to provide advice by Guideway Financial Services (ABN 46 156 498 538, AFSL 420367). Guideway is a licensed financial services business providing CSC financial planners with support to provide members with specialist advice, education and strategies.
Financial planning
Now might be a good time to seek financial advice to discuss your options. Get adviceRollover your benefit
You can open a PSS accumulation plan account to keep your super with CSC. About PSSapLearn with our Looking Ahead: Redundancy online program
Work through our self-paced online program to discover practical and thoughtful redundancy decision-making steps. Each module takes about 15 minutes to complete and includes a workbook, self-assessment questions, and links to more information.
Explore these topics and begin building a framework for your redundancy planning.
- Support yourself through the redundancy process
- Think though your next career steps
- Take stock of your finances
- Think about whether you may be ready to retire.
Manage your income in retirement with CSCri
Commonwealth Superannuation Corporation retirement income, or CSCri, is a more flexible way to access your super when you retire, giving you more freedom to receive your money when and how you need it.