Important note regarding all PSS commutations

If you commute part of your pension to a lump sum, any spouse or de facto partner pension that may become payable in the event of your death will be based on the pension being paid at that time. If you commute all of your pension to a lump sum, a spouse pension will not be payable in the event of your death.

Normal PSS retirement pension at or after age 60

If you retired at or after age 60, you may elect to commute all or part of your pension to a lump sum within a prescribed timeframe.

An election to take a part or full lump sum must be made no later than six months after your retirement. The exchange (commutation) of a pension to a lump sum takes effect on the date of retirement. If no election to take a lump sum has been received by the administrator, Mercer, within six months of your last day of service, your benefit will be paid as a pension only.

Any pension that may be paid to you between your date of retirement and the day on which the lump sum payment is actually paid to you is deducted from the lump sum.

Please refer to PSS Fact Sheet 3: Benefits on normal retirement for more information.

Early voluntary PSS retirement pension between age 55 and 60

If you retire between 55 and 60, you may elect to commute all or part of your pension to a lump sum within specified timeframes.

You can make only one election to commute any part of your pension.

If you didn't elect to commute at the time your pension commenced, you may elect to commute within six months after your date of exit. If you do not make an election until after you start receiving your pension, the lump sum is reduced by the amount of pension paid to you since your pension commencement date.

If you don't elect to commute within that timeframe, you will have a second and final opportunity to commute when you turn 60. An election to commute must be lodged with STC no later than six months after your 60th birthday.

If you do not make an election until after you reach 60, the lump sum is reduced by the amount of commuted pension paid to you since you turned 60.

Please refer to PSS Fact Sheet 4: Benefits on early voluntary retirement for more information.

If you are receiving an invalidity pension, you will have an option to commute all or part of your pension to a lump sum. An election to commute part or all of the pension cannot be processed before you turn 55, and you can only make one election to commute any part of your pension.

PSS invalidity pension

Redemption of the prescribed part of a pension

Members on an HOD pension have additional commutation options. These are based on the prescribed part of their pension, which is the amount (calculated on an annual basis) equal, in the opinion of STC, to what would have been payable to the member in weekly compensation payments under the Workers Compensation Act 1987 if the disabled worker had been entitled to payments under that Act.

This amount is calculated at the date of the member's discharge from the NSW Police Force. Members can apply to commute the prescribed part of their pension, but their application must be approved by SAS Trustee Corporation (STC).

Please refer to PSS Fact Sheet 13: Partial Commutation (redemption) of Hurt on Duty (HOD) Invalidity Pension under section 10C for more information.

If your invalidity pension commenced prior to your 55th birthday, you will be able to commute all or part of your pension to a lump sum at age 55. If you make no election to commute at age 55 you will have a second and final opportunity to commute at age 60. If you wish to make an election to commute all or part of your pension at age 55, you must lodge an election with STC no earlier than six months before your 55th birthday, and no later than six months after it.

If you are eligible to make an election to commute all or part of your pension at 60, you must lodge an election with STC no earlier than six months before your 60th birthday, and no later than six months after it. If an election is processed after your 55th (or 60th) birthday, the lump sum is reduced by the amount of commuted pension paid to you since you turned 55 (or 60).

If your invalidity pension commences between age 55 and 60, you can commute all or part of your pension to a lump sum on the date your pension commences. If you don't elect to commute at the time your pension commences, you may elect to commute within six months after your date of exit. If you make no election to commute during that timeframe, you will have a second and final opportunity to commute at age 60.

If you are eligible to make an election to commute all or part of your pension at age 60 you must lodge an election with STC no later than six months after your 60th birthday.

If you do not make an election until after you start receiving your pension (or after you turn 60), the lump sum is reduced by the amount of commuted pension paid to you since the pension commencement date (or your 60th birthday).

If your invalidity pension commenced after you turned 60, you have one opportunity to commute your pension. If you wish to make an election to commute all or part of your pension with effect from your pension commencement date, you must lodge an election with STC no later than six months after the day you became entitled to the allowance. If you do not make an election until after you start receiving your pension, the lump sum is reduced by the amount of commuted pension paid since your pension started.