Lump Sum Scheme

For the Member Component you have the option to choose from including one or a combination of investment options. Members with a PSESS and/or SG Account have this component invested in the Defined Benefit High Growth option, (which cannot be changed).

Click here to learn more about your investment options.

The Lump Sum Scheme was opened on 1^st July 1988 and closed to new members on the 3^rd of May 1994.

The scheme is a hybrid scheme. This means that most member benefits consist of both accumulation and defined benefit monies. The Defined amount will vary depending on the number of years of contributory membership and final salary. The accumulation section consisting of the member account (and also including any rollover component), will fluctuate with investment earnings.

As a Lump Sum Scheme member, you’re entitled to Temporary Disablement (Income Protection) cover, Total & Permanent Disablement and Death benefits up to age 55². If you salary sacrifice into a Triple S account, you’re eligible to apply for insurance by purchasing additional units of Triple S Death and TPD cover.³

The Lump Sum Scheme is an untaxed fund. This means that the 15% contributions tax is not payable during membership of the scheme, however it is payable upon members leaving the scheme. Most other super funds are required to tax contributions as they receive them.⁴

If you retire from the SA public sector at or after age 55 you'll receive a lump sum payment equal to the sum of the following:

• Member Account
• Employer Component
• PSESS Account (if applicable)
• Rollover Account (if any)

There are a number of factors that can effect how your retirement benefit is taxed. See the Product Disclosure Statement for more information.

It’s important you are aware that any part of your Rollover Account that was subject to preservation before it was rolled into the Lump Sum Scheme will still be subject to Commonwealth preservation rules. This means that, depending on your age and circumstances, you may have to wait longer to access this portion of your entitlement.

Use the Benefit Projector in the secure member area of this website to estimate your potential retirement entitlement.

Before claiming your entitlement you might want to consider the benefits of investing in the Super SA Flexible Rollover Product or the Super SA Income Stream, so that your money can keep growing as you transition to and throughout your retirement. You should also consider getting some professional financial advice to help you make decisions right for your circumstances.

Once you reach age 60, Transition to Retirement (TTR) rules allow you to receive part of your super entitlement as an income stream, such as the Super SA Income Stream. You can use an income stream to supplement your income when you reduce your working hours or salary. You cannot take any portion of your super as a lump sum cash payment.

Am I eligible for TTR?

To be eligible for TTR, you must meet all the following:

• have reached age 60
• have entered into an agreement with your employer to reduce your hours of employment, or undertake duties which reduce your salary, and
• undertake your TTR arrangement with a view to future retirement.

How much of my super can I access under TTR rules?

Generally, you can access the equivalent proportion of your Lump Sum Scheme entitlement to the salary reduction reflected in your TTR arrangement. As an example, if you reduce your salary by 20% then you could roll over 20% of your Scheme entitlement to an income stream.

In addition to the maximum amount described above, 100% of your PSESS account, if you have one, can be rolled over into an income stream.

How do TTR arrangements affect my points?

There will be a reduction in the points you have already accrued and a reduction in the number of points you accrue in the future.  The reduction of your accrued points is approximately reduced by the percentage reduction rolled over to an income stream and your future points earning is reduced inline with your reduction in salary.

See the Points fact sheet for more information about Points.

Do I need approval to start a TTR?

Yes, when applying for a TTR you will need to attach a completed “Application for Transition to Retirement and Superannuation Arrangement” form approved by your line manager and agency delegate. 

• before age 55 receive a resignation entitlement
• over age 55 receive a retirement entitlement.

• cash part of your lump sum entitlement⁵
• preserve your accrued lump sum entitlement in the Lump Sum Scheme
• roll your fully preserved entitlement into a complying super fund, such as the Super SA Flexible Rollover Product.

You should also be aware that if choose to cash part of your lump sum before age 55 you will effectively lose part of your Employer Component.

If you wish to take one of these options you must apply within three months of your resignation.

You can only cash the following components of your super when you reach the scheme retirement age of 55⁵:

• Employer Component
• PSESS Account (if applicable)
• any preserved part of your Rollover Account (if any) .

It’s important you’re aware that any part of your Rollover Account that was subject to preservation before it was rolled into the Lump Sum Scheme will still be subject to Commonwealth Government preservation rules. This means that, depending on your age and circumstances, you may have to wait longer to access this portion of your entitlement. 

Preserving your entitlement until age 55

If you choose to leave your super in the Lump Sum Scheme, it will be preserved until you can claim your entitlement at age 55, subject to applicable tax rates which depend on your age. However access to any amounts subject to Commonwealth Government preservation rules remain governed by those rules.

Over 55

If you are over 55 and take a Target Voluntary Separation Package (TVSP), you will receive a retirement benefit.

Under 55

If you take a Target Voluntary Separation Package (TVSP) before age 55 you can choose between your resignation entitlement or an immediate lump sum payment.
It’s important you’re aware that any part of your Rollover Account that was subject to preservation before it was rolled into the Lump Sum Scheme will still be subject to Commonwealth preservation rules. Also, the Superannuation Guarantee (SG) portion of your Employer Component is subject to Lump Sum Scheme preservation rules. This means that, depending on your age and circumstances, you may have to wait longer to access these portions of your entitlement.

You have the following options for your lump sum payment:

• take the unpreserved amount in cash⁵
• preserve your entire entitlement in the Lump Sum Scheme until age 55
• roll your fully preserved entitlement into a complying super fund, such as the Super SA Flexible Rollover Product.

If you wish to cash your unpreserved entitlement you must apply within three months of finishing work.

Regardless of your age or when you resign, your preserved entitlement can be rolled over into a complying super fund, like the Super SA Flexible Rollover Product, at any time.

You should also consider getting some professional financial advice to help you make decisions right for your circumstances.