Early voluntary retirement benefits
If you voluntarily retire between 55 and 60 (except due to invalidity), you have the choice of taking your benefits as:
- an indexed fortnightly pension
- a lump sum payment
- a combination of both.
The amount of your benefit depends on your length of service and age at retirement. The closer you are to age 60, the higher the benefit for each year of service. The maximum early voluntary retirement benefit is payable after 30 years of service.
The pension benefit payable is a percentage of your salary of office (superable salary) at retirement, with the amount depending on your age and the length of your PSS membership. In the case of members working part time, the superable salary is the equivalent full-time (or attributed) salary.
The pension rates above are reduced to offset the 15% tax payable on your employer's contributions for your benefits. Refer to the Contributions tax section for further information.
Lump sum payment
You may elect to commute all or part of your pension to a lump sum. If you elect to receive all of your early retirement benefit as a lump sum instead of a pension, the lump sum payable is equal to your superable salary at the time of retirement, multiplied by a factor (number) which depends on your age at retirement and length of service. To find this amount, refer to Table 2 of PSS Fact Sheet 4: Benefits on early voluntary retirement. If you elect to receive part of your benefit as a lump sum and the rest as a pension, the lump sum is calculated proportionately.
An election to take a lump sum must be made no later than six months after your retirement date. Commuting a pension to a lump sum takes effect from your retirement date, and any pension paid to you between your date of retirement and the day the lump sum is paid to you is deducted from the lump sum. If you do not elect to take a lump sum within six months of your last day of service, you will have another opportunity to commute when you turn 60.
Benefit payable on the death of a retired PSS member
On the death of a retired PSS member, a spouse pension is payable only to an eligible person (which includes a de facto partner and may include a same sex partner) and only where the scheme member elected to receive a pension. The partial commutation of a member's pension reduces a spouse's pension entitlement on a proportional basis. A spouse or de facto partner's pension is not payable where the member exchanged the whole of their pension entitlement for a lump sum.
Please refer to PSS Fact Sheet 4: Benefits on early voluntary retirement for more information.