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Govt Workers Scammed?, page-3

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baxtermcfaxter

6,204 Posts.

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27/04/18

17:10

Post #: 32729104
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Originally posted by baxtermcfaxter ↑

In the Commonwealth Government CSS scheme there is a provision to keep your lump sum in the scheme until you are 55 whether you are still employed by the govt or have been made redundant at any age prior to 55 ( or 65 if you so wish) .
The redundancy provision means that a pension would be calculated from the basic contributions and earning part of the lump
sum at the minimum age of 55 ( or later to any age to 65 if so wished )
The calculation is ( your lump sum of basic contributions plus earnings ) X 2.5 X 0.0925

Lets say after 35 years of service at age 55 the pension would be 48% , at 65 the maximum would be 52.5%..I recall
And lets say the salary is $50,000 pa with a super balance of $150,000 basic earnings and interest.

Retiring...So age 55 pension $24,000 at 65 pension $ 26,250

Resigning at 54 years and 11 months , rolling over the lump sum until you are 55 and then taking a pension is
$150,00 X 2.5 X 0.0925 ( 9.25%) equals $34,688

and you would ?

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This does not work for all employers ...it favours those that came in the early years when the newer CSS scheme was introduced
and detrimental to those that were in the older UNIT scheme longer...Those it does not work for generally retrie later towards 65

The CSS scheme was replaced by the PSS scheme then PSS2 I think , now NO pension schemes .....
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