The personal details section of your Annual Benefit Statement lists five different benefit point amounts:

• Points earned per year – The number of benefit points your contributions would 'buy' based on your contribution rate that year.
• Contributed benefit points – The benefit points your contributions have 'bought' since you joined SASS. In effect, this is how many benefit points you have already accrued.
• Maximum benefit points – The total number of benefit points you could have accrued had you contributed at an average 6% contribution rate for the current duration of your SASS membership. For example, after 20 years of membership, your maximum benefit points would be 120 points (that is, six benefit points per year for 20 years of membership: 120 maximum benefit points^).
• Accrued benefit points – Those benefit points you already 'own'. This amount is used to calculate the employer-financed benefit. Accrued benefit points are always the lower of the total of contributed benefit points and maximum benefit points, and can never exceed a total of 180 points.
• Prospective benefit points – The benefit points a member with Additional Benefit cover would potentially have earned at age 58. This projection is based on the member's average contribution rate at the date of death or invalidity (see the 'Optional Additional Cover' fact sheet for more information).

^Assuming you have always been a full-time employee and have not had any periods of ordinary leave without pay.

Your Annual Benefit Statement is your primary source of information when it comes to monitoring your benefit points situation, and ensuring you are maximising your points.

How to ensure you are maximising your benefit points

It is easy to find out if your accrued benefit points are currently less than your maximum benefit points. Simply check your last Annual Benefit Statement. If your accrued benefit points are less than your maximum benefit points you may need to contribute at a higher rate to bring your average contribution rate up to 6% and therefore optimise your employer-financed benefit.

If your accrued benefit points are less than your maximum benefit points, there are a number of steps you can take:

• Decide when you think you're going to retire and therefore how many years of SASS membership you have left.

• Calculate the contribution rate required to bring your average contribution rate up to 6% for the remainder of your SASS membership (remember, you can contribute up to a maximum of 9% per year).

• Make the required changes to your contribution rate.

To calculate how many years it will take you to catch up your benefit points:

1. Subtract your total accrued benefit points from your total maximum benefit points. This is the number of benefit points you need to catch up. For simplicity we can call this the catch-up amount.
2. Decide what extra level of contributions you want to make – or can afford to make – each year. To catch up your benefit points you will need to contribute at more than 6%. The amount you contribute above 6% is your increased contribution rate.
3. Divide the catch-up amount by your increased contribution rate. The answer to that calculation is the extra amount you need to contribute.

Example:

You have been contributing for 15 years at 4%, giving you a total of 60 accrued benefit points (15 x 4). Your maximum benefit points total for that period of membership is 90 (that is, six benefit points per year x 15 years = 90).

So:

90 – 60 = 30. Your catch-up amount is 30 benefit points.

Now you can decide on the appropriate increased contribution rate given the time remaining before your retirement and your other financial commitments:

30 points ÷ 1% additional contribution = 30 years' future contributions

@ 7% p.a.

30 ÷ 2% = 15 years @ 8% p.a.

30 ÷ 3% = 10 years @ 9% p.a.

As you can see, if you contributed 9% for the next 10 years you would catch up your benefit points, and be entitled to six new benefit points for each of those 10 years. Your total accrued benefit points after 25 years of membership would be 150, which is the maximum benefit points available to you for that period (that is, six benefit points a year x 25 years = 150).

This method should allow you to calculate what you need to do to catch up. This calculation also allows you to balance the increased contribution rate and the duration of that increased contribution. This should help you make a decision that suits your age and personal financial circumstances. (It is important to remember that you can only contribute at a maximum of 9% a year.)

Depending on your age, letting your average contribution rate drop below 6% can lower the value of benefits payable on death or total and permanent invalidity if your accrued benefit points total has not reached the maximum 180 benefit points (see the 'Optional Additional Benefit Cover' fact sheet).

• For most SASS members, each 1% of salary contributed in a year results in approximately one benefit point. This may vary for some members, including part-time employees.

• The employer-financed benefit is 3% for former members of the State Public Service Superannuation Fund (SPSSF).

• The maximum benefit points allowance for former members of SPSSF at age 55 is 162 points. At age 58 or after it is 180.