About PSS

Key terms

Glossary

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 Superannuation Contribution (LISC) 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.