Withdrawing your super

We're still finalising content for CSCri on this page.

For now, please see the CSCri Product Disclosure Statement.

Information on this page

• What you should know upfront
• How is my super benefit calculated?
• How do I claim my super benefit?
• When can I claim my super benefit?
• Compulsory payment of super benefits
• Do I have to pay fees?
• What is retirement?
• Are my super benefits payable if I am retrenched, I resign or I am dismissed?
• I'm a former temporary resident, can I transfer my funds?
• Can I get my super benefits for emergencies?
• How is my PSSap super benefit paid?
• How will my lump sum be taxed?
• How do I convert my lump sum to an income stream or pension?
• Can I transfer my super benefit over to another super fund?
• Financial advice for your needs and goals

What you should know up front

Before making any decisions, please read your Product Disclosure Statement (PDS) and consider seeking advice from a licensed professional such as a financial planner.

How is my super benefit calculated?

Your PSSap account is valued and declared in units. Your contributions whether made by you or your employer, less any tax that may apply, are used to buy units in PSSap. Each time you or your employer contributes, you buy more units. It’s similar to buying shares in a company.

The value of the units you hold is based on the ‘sell’ price of those units in the respective investment option(s) that applies to you.

Generally, the unit price for a particular day is declared on the next business day and will fluctuate in line with investment earnings. When you withdraw your super from PSSap, you will be cashing in, or redeeming, your units, at the applicable daily unit price on the day your application is processed.

How do I claim my super benefit?

You can download a Benefit application form, or if you're unable to download the form you can contact us and we'll send you a copy.

Once we receive your valid withdrawal request, we'll process your request using the unit price applicable to your investment option/s on the business day that the request is processed.

When can I claim my super benefit?

The PSSap Rules and the Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations) set out the conditions of release that must be satisfied before your super benefits can be claimed. Generally, you must have reached your preservation age before you can claim your superannuation benefit. However, this is not always the case and you should consider seeking professional advice to properly understand your options based on your personal circumstances.

Your PSSap benefit may consist of up to three components:

• a preserved benefit – you must meet a condition of release in order to cash all or part of this benefit
• a restricted non–preserved benefit – this benefit  will generally stem from employment-related contributions, other than employer contributions, made before 1 July 1999. Such benefits can't be cashed until you have met a condition of release specific to those benefits, or when you terminate gainful employment from your relevant employer. 
• an unrestricted non–preserved benefit – this benefit can be cashed out at any time.

Preserved and restricted non–preserved benefits

You can withdraw your super benefit*:

• when you permanently leave the workforce on or after age 60
• if you retire on or after your preservation age as set out in Table 1
• if we have approved your invalidity retirement and certified that you are entitled to receive invalidity benefits under PSSap
• if you suffer severe financial hardship or are eligible on compassionate grounds as determined by the Regulator
• if you leave the APS and your PSSap super account balance is $200 or less.

If you are a temporary resident or former temporary resident, you can withdraw your super benefit:

• if you have permanently left Australia after having been a temporary resident on a specified class of visa
• if you become permanently or temporarily incapacitated
• if you develop a terminal illness.

* Note: These lists are not exhaustive. Other conditions of release may apply to you.

Unrestricted non–preserved benefits

Certain benefits, which are not subject to preservation, may be withdrawn at any time. These benefits may consist of benefits in relation to which you have previously satisfied a condition of release, or unrestricted non–preserved amounts you transferred into PSSap.

 

Compulsory payment of super benefits

If we are required to abide by a superannuation agreement or a court order under the Family Law Act 1975, part or all of your benefit may be paid from PSSap.

We must also distribute your benefits when you die.

Is there a fee for withdrawing?

There are no fees for withdrawing funds from your PSSap account.

What is retirement?

If your preservation age is less than 60 and you reach that preservation age, you are taken to have retired if:

• an arrangement under which you were gainfully employed has finished

  and

• we are reasonably satisfied that you intend never again to become gainfully employed, either on a full–time or part–time basis.

If you have attained the age of 60, you will be taken to have retired if an arrangement under which you were gainfully employed has finished and either:

• you attained that age on or before the ending of that employment arrangement;  or
• we are reasonably satisfied that you intend never again to become gainfully employed, either on a full-time or part-time basis. 

Are my super benefits payable if I am retrenched, I resign or I am dismissed?

Retrenchment, resignation or dismissal alone will not satisfy a condition of release. However your circumstances may otherwise satisfy a condition of release. For example, if you are retrenched after attaining the age of 60, you may qualify to have your super balance released under the 'retirement' condition of release. 

I'm a former temporary resident, can I transfer my funds?

If you are a former temporary resident who accumulated superannuation while working, you can apply to have your super funds transferred to your overseas bank account. To do this, you will need to fill in the Application for a departing Australian superannuation payment form, available from the ATO website. 

Please do not use the Withdrawing your Super form to initiate this process.

Can I get my super benefits for emergencies?

You may qualify for early access to your super benefits on two grounds: financial hardship or specified compassionate grounds.

Financial hardship

You can apply for a financial hardship benefit release under two different circumstances:

Circumstance 1

If you have not reached your preservation age, or you have reached your preservation age and are gainfully employed (you are working more than 10 hours a week) Commonwealth Superannuation Corporation (CSC) may decide (but is not required) to release part of your benefits if it is satisfied on written evidence from a Commonwealth department that you:

• have received a relevant Commonwealth income support payment (such as Centrelink, Department of Veterans’ Affairs or a Commonwealth Community Development Employment Projects organisation) for a continuous period of 26 weeks. You must still be receiving this payment at the date of providing the written evidence and
• are unable to meet reasonable and immediate family living expenses.

In those circumstances, legislation states that CSC can only pay you a single gross lump sum of no more than $10,000 and no less than $1,000 (or a lesser amount if the amount in your personal accumulation account is less than $1,000). Only one payment is permitted in a twelve–month period.

Circumstance 2

If you have reached your preservation age and are no longer gainfully employed (you are not working more than 10 hours a week) CSC may decide (but is not required) to release your benefit under financial hardship grounds if it is satisfied on written evidence from a Commonwealth department that you:

• have reached your preservation age plus 39 weeks and
• have received a relevant Commonwealth income support payment (such as Centrelink or Department of Veteran’s Affairs) for a cumulative period of 39 weeks after reaching your preservation age.

In this circumstance there is no restriction on what we can pay you up to your account balance.

Compassionate grounds

In very limited circumstances you can apply for the early release of your super on compassionate grounds through the Australian Taxation Office (ATO). These conditions are set out in the SIS Act and cover expenses related to a serious medical condition or to prevent the forced sale of your home by your mortgagee.

The ATO is required to consider and approve any request to release super on compassionate grounds and any withdrawal request sent to PSSap must include notification of ATO approval. Once we have this information we will advise which benefits we can and cannot release to you.

How is my PSSap super benefit paid?

If you have met a condition of release (outlined earlier), you choose whether you take your benefit as a lump sum amount or convert your super balance into an income stream or pension.

A lump sum benefit will also be paid on death or invalidity.

If you have income protection cover through your super account and you successfully claim, you may also receive an income stream for the period stipulated.

How will my lump sum be taxed?

See the Tax and your PSSap super booklet available on the PSSap website for the most up to date information on how your super will be taxed.

How do I convert my lump sum to an income stream or pension?

You can choose to convert some or all of your super balance to an account based income stream via Commonwealth Superannuation Corporation retirement income (CSCri). CSCri enables members to receive their super savings as either a:

• transition to retirement income stream or
• standard retirement income stream.

It also allows you to stay within the government superannuation environment once you stop working with the flexibility to call on lump sums if and when you need them.

Can I transfer my super benefit over to another super fund?

You can transfer your PSSap super to another complying fund at any time. The amount you transfer is up to you, but if you wish to remain a PSSap member you must leave a $6000 minimum balance in your PSSap super account.

If making a partial withdrawal and the requested amount will leave an insufficient remaining balance, we will pay the lesser amount to ensure the minimum balance is maintained.

Before you do decide to transfer your PSSap to another super fund, it is important that you consider any future implications (for example, you may not be eligible for CSCri once you have transferred your PSSap account to another fund).

Looking to withdraw your super? It’s easy. 

To claim and withdraw your MilitarySuper benefit, please fill out a benefit application form. Your form will outline your eligibility conditions and provide instructions.

When must I complete my application?

Within three months, either side, of your discharge or retirement date.

What is the standard processing time?

Our standard processing time is 10–15 business days from the later of;

• the date we receive your completed application; or
• date of discharge; or
• the date of claim you have indicated on the form.

Payment information

• Payment can only be made to a bank account in Australia.
• The nominated account must be in your name (it may be a joint account).
• Pension paydays are the alternate Thursday to Defence paydays.
• Pension deductions are limited to tax, Medicare and child support.
• Your first pension increase will relate to the six month CPI period in which you commence your pension. Your increase will depend on the number of months you were receiving a pension during this time. The first month we count is the first month in which you received a pension for at least half of that month.

Daily unit price

• Any amount paid out of MilitarySuper will be determined based on the daily unit price applying on the later of the day after you discharge and the day after your completed application (with all required information for processing) is received.
• Please check daily unit prices when you submit your benefit application.

Where your age is not an exact number of years

We pro rata the pension conversion factor between the one that applies to your age on your last birthday, and the one that applies to your age on your next birthday.

The pension conversion factor is calculated in accordance with the following formula:

F				(0.2 X Y)
				D

• F is the factor for the exact number of years of your current age from the table
• Y is the number of days since your last birthday
• D is the number of days in the year

Joe’s example

Joe is 55 years and 112 days old. His pension conversion factor is calculated as:

12				0.2 x 112	=	11.93863
				365

Anna’s example

Anna is 56 years and 314 days old. Her pension conversion factor is calculated as:

11.8				0.2 x 314	=	11.62795
				365

 

 

If you are a preserved member

You can claim your entire preserved benefit, subject to cashing restrictions*, once you have reached age 55.

To claim your preserved benefit, contact us and we’ll send you a benefit estimate and a benefit application form for you to complete and return to us.

* Some or all of your lump sum benefit may only be rolled over to another super fund until you meet a condition of release such as reaching preservation age and retiring.

1

If you are a preserved member

You can apply for your entire preserved benefit from the earliest of the following dates:

• On reaching your minimum retirement age (generally age 55), provided you are regarded as having permanently retired from the workforce; or
• On reaching age 60 and ceasing gainful employment on or after that age; or
• when you reach age 65.

To claim your preserved benefit, you will need to contact us. We will send you a benefit estimate and a benefit application form for you to complete and return to us.