Glossary
| Terminology | Definition |
|---|---|
| Act | SASS's governing statute, the State Authorities Superannuation Act 1987. |
| Additional Benefit | The Additional Benefit is payable to a member who has Additional Benefit cover on exiting the scheme due to total and permanent invalidity or death prior to the early retirement age. |
| Additional Benefit levy | The amount deducted from a contributor's account for Additional Benefit cover. The levy is payable by the insured member up to the retirement age. |
| Additional Employer Contribution (AEC) | An accumulation style benefit which is contributed to monthly by employers. Only members whose employment after 30 June 2013 was subject to NSW Public Sector Wages Policy are eligible for AECs. As a contributory member the accumulated value of AECs plus investment earnings form the Additional Employer Contribution account, the balance of which is payable as lump sum benefit at exit. If a benefit is deferred, the AEC account is rolled into the basic benefit account and will, from that time on, form part of the deferred basic benefit account. |
| Annual Benefit Statement | The Annual Benefit Statement shows members their accrued benefit entitlements in SASS, and is generally issued around October each year. |
| Attributed salary |
Attributed salary means: - for a full-time employee, their salary - for a part-time employee, the equivalent full-time salary for the employee's position. |
| Basic benefit | The productivity-type superannuation benefits accrued by SASS members in addition to their contributory scheme benefits. The basic benefit is calculated at 3% of final average salary or final salary, depending on the mode of exit, for each year of service from 1 April 1988. It is fully employer financed. |
| Contributor | An employee who contributes to SASS. |
| Contributor-financed benefit | The part of a benefit financed by employee contributions and investment earnings. |
| Contribution rate | The rate varies between 1% and 9% of the employee's superable salary, depending on the employee's nominated contribution rate. |
| Defined benefit | The benefit based on a member's final or final average salary upon exit from employment. The formula for calculating a defined benefit may (as in the case of SASS) also take into account the member's length of membership and level of contributions made. |
| Deferring a benefit |
A member who exits the scheme prior to early retirement age may choose to defer the SASS benefit and is generally required to defer the basic benefit. Deferring a benefit allows the member to receive a lump-sum benefit payable at or after 55 years of age (if permanently retired from the workforce), on total and permanent invalidity, or on death (payable to a surviving spouse or partner). |
| Early retirement age | The age at which retirement benefits are payable (generally 58 years). Some employees have their retirement age at 55. Members should refer to their Annual Benefit Statement to determine their early retirement age. |
| Employer-financed benefit | The part of a benefit that is financed by employer contributions (unless specified otherwise this does not include the Additional Employer Contribution benefit). |
| Entry date | The date that the employee's election to contribute to SASS took effect. |
| Exit date | The date that the employee ceases employment with an employer. |
| Final salary | The amount of annual superable salary payable to an employee on their exit date. |
| Final average salary | The average of the annual superable salaries paid to an employee on their exit date and on 31 December for the preceding two years. |
| LWOP | Leave without pay. |
| Member number | Each member has a unique superannuation number that does not change for their period of continuous membership with SASS or SANCS. |
| Mercer | Mercer, the contracted scheme administrator for SASS. |
| Retrenchment |
Where a member's service with an employer is compulsorily terminated, or the member accepts an offer of retrenchment on the grounds that: - the employer no longer requires the member's services and, on termination of that service, does not propose to fill the member's position - the work that the member was engaged to perform is completed - the amount of work that the employer requires to be performed has diminished and it is necessary for the employer to reduce the total number of employees. |
| Salary | For SASS purposes, the annual base amount paid to an employee, including or excluding amounts or certain allowances as specified in the Act. |
| Salary sacrifice | The contribution deducted from an employee's salary before income tax is deducted. This type of contribution is categorised as a concessional contribution. |
| Salary ratio | The ratio of the part-time salary to the full-time salary (that is, part-time salary divided by full-time salary). The salary ratio for full-time employees is 1 and the salary ratio for part-time employees is less than 1. |
| SANCS | The State Authorities Non-contributory Superannuation Scheme, which includes the basic benefit and where applicable, any Additional Employer Contributions, Commonwealth Government co-contributions and LISTO. |
| SES employees | Senior Executive Service employees. |
| Shortfall benefit | See Superannuation Guarantee (SG) benefits. |
| STC | The SAS Trustee Corporation (the Scheme Trustee) as constituted by the Superannuation Administration Act 1996. |
| Superannuation Guarantee (SG) benefits | Since 1 July 1992, the scheme administrator has automatically increased members' employer-financed benefits, where necessary, to meet Commonwealth SG requirements – that is, to avoid a shortfall in the provision of at least the required minimum employer-financed benefits. |
| Spouse or partner | The spouse or partner of a deceased SASS member or pensioner may be entitled to a benefit from the scheme on the death of the member or pensioner. A spouse may be the widow or widower of the deceased, or a de facto partner, including a partner of the same sex. Conditions apply to the payment of benefits to a de facto partner or spouse of a deceased pensioner. |
| Terminology | Definition |
|---|---|
| Abandoned units | Units to which a member is entitled but for which they have elected not to contribute. New units which accrue to a member can be abandoned on an Annual Adjustment Day if the member's contributions exceed 6% of their salary. |
| Additional Employer Contribution (AEC) | An accumulation style benefit which is contributed to monthly by employers. Only members whose employment after 30 June 2013 was subject to NSW Public Sector Wages Policy are eligible for AECs. As a contributory member the accumulated value of AECs plus investment earnings form the Additional Employer Contribution account, the balance of which is payable as lump sum benefit at exit. If a benefit is deferred, the AEC account is rolled into the basic benefit account and will, from that time on, form part of the deferred basic benefit account. |
| Annual Review Day | The day each member's entitlement to additional units is reviewed, to be adjusted from their Annual Adjustment Day. This day is 9 February for members born in the second half of the year and 28 July for those born in the first half of the year. |
| Annual Adjustment Day | The day from which any adjustments to a member's contribution rate made on the Annual Review Day will take effect. This day is 5 May for members born in the second half of the year and 21 October for those born in the first half of the year. |
| Commutation | The exchange of all or part of a pension benefit for a lump sum. |
| Contributed units | The number of units for which a member is contributing. The difference between a member's unit entitlement and contributed units is generally the number of any abandoned units. |
| Contributor | An employee who is a member of the SSS. |
| Early retirement age | The age of 55 (for a person contributing for normal retirement at age 60), provided they have 10 years of continuous membership in the scheme. |
| Final salary | The annual salary for superannuation purposes paid or payable to a member at their exit date, as specified in the Act. |
| Invalidity benefit | Payable from the scheme where a member has retired on the grounds of invalidity or physical or mental incapacity to perform their duties as determined by the STC. Also known as ill-health or breakdown benefit. |
| Normal retirement age | This is age 60, or age 55 for a woman contributing to retire at age 55. |
| Reduced value units | Abandoned units that retain some benefit at exit, the cost of which is met by the employer. Also known as non-contributed units. |
| Reserve units | Units for which a member contributes in advance, so they have the option to substitute them for ordinary units at a later date. |
| SANCS | The State Authorities Non-contributory Superannuation Scheme provides the Basic Benefit, and may include Additional Employer Contributions (AEC), Commonwealth Government co-contributions and Low Income Super Tax Offset (LISTO). |
| Spouse/de facto partner |
The spouse of a member means: - a person (whether of the same or a different gender) who, although not legally married to the member, lives with the person on a genuine domestic basis in a relationship as a couple; or - a person (whether of the same or a different gender) with whom the member is in a relationship that has been registered under a state or territory law dealing with the registration of certain prescribed relationships. |
| Superannuation Guarantee benefits | Since 1 July 1992, members' employer-financed benefits have been automatically increased by the scheme administrator, where necessary, to meet Commonwealth Superannuation Guarantee requirements; that is, to avoid a shortfall in providing at least the required minimum employer-financed benefits. |
| Unit entitlement | The number of units of pension for which a member is entitled to contribute based on their salary for superannuation purposes. |
| Terminology | Definition |
|---|---|
| Act | The Police Superannuation Scheme's governing statute, the Police Regulation (Superannuation) Act 1906. |
| Additional Employer Contribution (AEC) | An accumulation style benefit which is contributed to monthly by employers. Only members whose employment after 30 June 2013 was subject to NSW Public Sector Wages Policy are eligible for AECs. As a contributory member the accumulated value of AECs plus investment earnings form the Additional Employer Contribution account, the balance of which is payable as lump sum benefit at exit. If a benefit is deferred, the AEC account is rolled into the basic benefit account and will, from that time on, form part of the deferred basic benefit account. |
| Annual Statement | The annual statement issued to members showing their accrued benefit entitlements in PSS. It is issued around October each year. |
| Attributed Salary of Office | The full-time Salary of Office for a PSS member's position. In the case of a part-time officer, the attributed Salary of Office is the salary that would be payable to the officer at that time if employed as a full-time member of the NSW Police Force (see Salary of Office). |
| Basic benefit | The productivity-type superannuation benefit accrued by PSS members in addition to their contributory scheme benefits. Calculated at 3% of final average salary or final salary, depending on their mode of exit and age, for each year of service from 1 April 1988. It is fully employer financed. |
| Commutation | The exchange of a fortnightly pension benefit for a lump sum by reducing the member's pension entitlement. |
| Change in hours worked (CIHW) | A reduction or an increase in the hours an employee works for a period of time. |
| Contributor | An employee who is a current member of and contributing to PSS. |
| Contribution rate | PSS members contribute at the rate of 6% of their annual superable salary (see Salary of Office). |
| Consumer Price Index (CPI) | The All Groups Consumer Price Index number for Sydney, published by the Commonwealth Statistician in respect of the June quarter for each year. |
| Disengagement | A special superannuation benefit that may be offered by the Commissioner of Police to non–Senior Executive Service (SES) members aged 45 to 55 with at least 20 years full-time service. |
| Deferral of a benefit | When a member exits employment prior to the early retirement age other than by death or disability, they may choose to defer their benefit with the scheme. Deferring a benefit allows members to receive a lump sum benefit (generally higher than the cash withdrawal benefit as it contains an employer-financed component) payable at or after 55 years of age, on total and permanent invalidity, or on death (payable to a surviving spouse or de facto partner, or to the estate if there is no surviving spouse or de facto partner). |
| Early retirement age | Between the ages of 55 and 60 |
| Exit date | The date a member ceases employment with an employer. |
| Final salary | The amount of annual superable salary payable to an employee on their exit date. |
| Final average salary | The average of the annual superable salaries paid to an employee on their exit date and on 31 December for the preceding two years. This is used to calculate the Basic Benefit. |
| Hurt on duty (HOD) | An invalidity or death benefit is payable from PSS where the Commissioner of Police certifies that the invalidity retirement or death was caused by the member having been 'hurt on duty'. |
| Not hurt on duty (NHOD) | Paid when the Commissioner of Police certifies that the invalidity retirement or death was caused by the member being 'not hurt on duty', but that the member may still claim an invalidity benefit. |
| Invalidity benefit | An invalidity benefit is payable from the scheme where a member is retired on the grounds of invalidity or physical or mental incapacity to perform their duties as determined by the STC. |
| Membership number | A seven-digit number unique to each employee that does not change for their period of continuous membership of the scheme. It is also known as the file number or superannuation number. |
| Mercer | The contracted scheme administrator for PSS. |
| Leave without pay (LWOP) | A period of leave without pay. |
| Normal retirement age | 60 years of age. |
| Salary sacrifice | Contributions deducted from an employee's salary before income tax is deducted. This type of contribution is categorised as a concessional contribution and attracts the Commonwealth Government's 15% contributions tax on entry to the scheme. |
| Salary of Office | A PSS member's superable salary for contributions and benefits is based on Salary of Office. This is the ordinary annual (base) Salary of Office for the employee's rank and position, and does not include certain specified allowances such as relieving, expenses, uniform, and climatic and shift allowances, or an allowance paid in lieu of overtime. An allowance may be included if it is prescribed in the Regulations. Allowances for certain academic qualifications are currently included. |
| Salary ratio | The ratio of a part-time salary to the equivalent full-time salary (part-time salary divided by full-time salary). The salary ratio for full-time employees is 1, and the ratio for part-time employees is less than 1. |
| State Authorities Non-contributory Superannuation Scheme (SANCS) | Provides the Basic Benefit and where applicable any Additional Employer Contribution (AEC), Commonwealth Government co-contribution and Low Income Super Tax Offset (LISTO) entitlements. |
| Shortfall benefit | See Superannuation Guarantee benefits. |
| Spouse/partner | The widow or widower or a de facto partner, including a partner of the same sex. The spouse or partner of a deceased PSS member or pension member may be entitled to a benefit from the scheme on the death of the employee or pension member. Conditions apply to the payment of spouse and partner benefits. |
| Superannuation Guarantee (SG) benefits | The benefit paid to ensure that members receive the required minimum employer-financed benefits. Since 1 July 1992, members' employer-financed benefits have been automatically increased by the scheme administrator, where necessary, to meet Commonwealth SG requirements. |