By contributing more personal contributions to your SASS account (up to an annual limit of 9% of your annual salary) you can increase the employer-financed component of your final benefit.
The amount of personal contributions you make are 'matched' to the employer-financed benefit you receive (up to a limit) on retirement. In simple terms, for every 1% of salary you contribute to SASS in a year, you accrue approximately one benefit point in that year.^
On retirement, each benefit point accrued provides an employer-financed benefit of 2.5%* of your final average salary. You can accrue a maximum average of six benefit points for each year of your scheme membership and a lifetime maximum of 180 points.#
Depending on factors such as your level of contributions and length of service, the additional benefits can be worth many thousands of dollars.
What you can do to increase your employer-financed benefit
1. Check your statement
Check your statement to find your current contribution rate and the number of benefit points you have accrued over your scheme membership.
2. Use the calculator on the retire.aware.com.au website
The contribution rate calculator available at retire.aware.com.au/statesuper illustrates in dollar terms just how much difference your contribution strategy can make. Simply follow the steps outlined on the website to calculate how additional personal contributions could improve your employer-financed benefit.
3. Seek advice about your personal circumstances
To get the maximum benefit from increasing your contribution rate, it's important you speak to a financial planner.
An Aware Super financial planner can assist you in determining the contribution rate which will enable you to maximise the employer-financed benefit. They can also advise you on other important matters, including your concessional contribution limit. As a State Super member, your first appointment with an Aware Super financial planner is free of cost or obligation. It’s an opportunity to ask questions and confirm your understanding of how your scheme works, how any change to your working conditions such as working part time or taking long service leave can have an impact your super.
If you would like the planner to provide you with a financial plan tailored to your unique situation and goals, then a fee will apply, and that will be discussed with you before any work is commenced.
To arrange a phone or face-to-face appointment, call Aware Super on 1800 620 305 or visit retire.aware.com.au/statesuper.
4. Change your contribution rate
Towards the end of each calendar year, State Super will send you an Annual Statement detailing your current percentage contribution rate, personal account balance and accrued benefit entitlements.
This statement comes with an election form that allows you to change your percentage contribution rate from 1 April of the following year.
If you do not return a completed election form to Mercer by 31 December, salary deductions will continue at your previously elected rate, but based on your 31 December salary (as advised to Mercer by your employer).
You can elect to contribute at any rate between 1% and 9% of your pre-tax salary.
^ Members working part time receive benefit points proportional to their part-time employment.
* Approximately 2.12% after the reduction for the tax on employer contributions payable by the Fund since 1 July 1988. Employer-financed benefits attributable to membership prior to 1 July 1988 do not attract contributions tax.
# You can accrue a maximum average of six benefit points in a year, and most members have a lifetime maximum of 180. Former members of the State Public Service Superannuation Fund (SPSSF) have a lifetime maximum benefit point limit of 162 if retiring at age 55, or 180 if retiring later.
Note: Aware Financial Services Australia Limited (Aware Financial Services) (ABN 86 003 742 756) holds an Australian Financial Services Licence (AFSL number 238430) and is able to provide you with financial product advice. Aware Financial Services is owned by Aware Super Pty Ltd as trustee of Aware Super. State Super does not pay fees to, nor receives any commissions from Aware Financial Services for financial planning and member seminar services provided to State Super members. Neither State Super nor the New South Wales Government take any responsibility for the services offered by Aware Financial Services and its related entities, nor do they guarantee the performance of any service or product provided by Aware Financial Services and its related entities.