Normal retirement benefits

Generally, if you contributed for all of your unit entitlement, you can expect to receive a pension of 55–60% of your final salary on normal retirement.

The rate of pension payable on normal retirement is $5.50 each fortnight for each superannuation unit for which you have contributed. A reduced pension ($3.30 each fortnight) is paid on units for which you elected not to contribute — these are known as abandoned or reduced value units. There is usually an outstanding balance of personal contributions payable on units that you take up within five years of your retirement (that is, instalment rate units).

The pension rates above are reduced to offset a 15% tax payable on your employer's contributions for your benefits.

Pensions are adjusted each year in line with the movement in the Consumer Price Index (All Groups Sydney).

SANCS (basic benefit)

Members of SSS also receive a 3% non-contributory defined superannuation benefit (known as the basic benefit) for all service since 1 April 1988. In addition, eligible members will also be entitled to Additional Employer Contributions (AEC), Commonwealth Government co-contributions or low income superannuation contributions (LISC). The basic benefit, AEC, co-contributions and LISC are all paid from the State Authorities Non-contributory Superannuation Scheme (SANCS).

Can I exchange my pension for a lump sum?

All or part of your pension can be commuted (exchanged) for a lump sum amount, but the commutation must occur at specified times. See Commutation or exchanging your pension for a lump sum.

For more information about the pension payable at retirement, please refer to SSS Fact Sheet 7: Normal retirement benefit.