How will taking a redundancy affect your super?

Navigating redundancy for PSS members

Redundancy can be an overwhelming time for you both professionally and personally. CSC is here to support you with information about your super, and with practical advice and resources to help as you decide what’s next.

Taking steps early in the redundancy process will help make this transition as seamless as possible. While the redundancy process can be different for everyone, this page explains some essentials about your super and the actions you need to take.

Next steps

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 the timeframes noted above may result in your benefit being treated as unclaimed money and paid to the Australian Taxation Office (ATO).

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.

1. 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.

2. 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.

   Please Note: If you don’t receive a benefit estimate before you cease employment, you should speak with your personnel section as soon as possible.

Did you know? You can also estimate your potential redundancy benefit by logging into your Member Services Online account and using the i-Estimator tool.

3. 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.

   *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.

   
   

   We're here to help

   If you're unsure whether you need advice, you can book a complimentary 15 minute general advice appointment with one of our dedicated in-house financial planners at CSC.

4. 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.

   
   Download the Redundancy Application Form

Understanding your options when you leave the military can make a real difference to your super. Whatever you choose may have long-term implications.

If you accept a voluntary redundancy, or are dismissed from your job, you can only withdraw your ADF Super from the superannuation environment if you meet a 'condition of release' set out in the Superannuation Industry (Supervision) Act 1993 (SIS Act).

If you accept a voluntary redundancy but have not yet reached your preservation age, your ADF super benefits are preserved and cannot be paid to you. However, you can roll out some or all of your benefit to another fund at any time.

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 203 439 to discuss your options.

Or transfer your super to another fund

You can transfer some or all of your PSSap super to another super fund at any time. You’ll find the instructions on our Withdrawing your super form.

Note that if you want to transfer part of your super to another fund, you must leave a balance of $6,000 or more in your PSSap account.

Need some help with that?

Becoming redundant at work can be stressful, feel complex and leave you with questions about how best to manage your super and insurance cover after you’re left. Remember, we’re here to guide you—so if you need us, give us a call on 1300 725 171.