Applying on the basis of permanent incapacity

If you suffer permanent physical or mental incapacity, where the incapacity prevents employment in any occupation that it would be reasonable for you to undertake, you can apply to be paid the deferred pension.

The Trustee determines whether these grounds exist, on the basis of medical advice provided by the NSW Government Medical Assessment Service Provider or other medical advisers nominated by the Trustee.

Commonwealth payment rules

If you are under your preservation age (between 55 and 60), you can apply for the compulsorily preserved component of your benefit only if you provide certification from two legally qualified medical practitioners. They must certify that you are 'unlikely to ever be employed in a capacity for which you are reasonably qualified because of education, training or experience'.

Your preserved component may include all or part of your basic benefit, Commonwealth Government co-contributions and some of your pension benefit.

If part of your pension must be preserved, you have two options:

• it can be paid immediately as a non-commutable pension; or
• it can be paid each fortnight into a separate account, where interest will be applied at the Fund Earning Rate.

If you are suffering from a terminal illness, then you may be able to apply to have your lump sum benefit paid free of any tax, subject to certain eligibility criteria.

Can an invalidity pension be exchanged for a lump sum?

An option exists for an invalidity pension to be commuted for a lump sum at age 55 and, if that option is not exercised then, again at age 60. See SSS Fact Sheet 14: Exchanging your pension for a lump sum.

For more information please refer to SSS Fact Sheet 9: Invalidity retirement benefit.