Are you curious about whether you can transfer your PSS Super to another fund? Well, the answer is yes, you absolutely can. You might be considering this option because you’re not satisfied with your current PSS Super plan, or you might want to explore other options that offer better returns on your investment. Whatever your reason may be, rest assured that transferring your PSS Super is a straightforward process that can potentially lead to better financial outcomes for your future.
Before we dive into the specifics of how to transfer your PSS Super to another fund, let’s discuss what PSS Super is. PSS Super is a defined benefit superannuation scheme that is exclusively available to current and former Australian public servants. Essentially, PSS Super provides attractive retirement benefits that are calculated based on your length of service and final or average salary. While PSS Super is a great option for some people, others may prefer a different scheme that aligns better with their specific financial goals and preferences.
In this article, we’ll cover everything you need to know about transferring your PSS Super to another fund, including the benefits and potential drawbacks of doing so, the steps involved in the process, and some tips for making the most out of your new fund. Whether you’re a current or former public servant, making informed decisions about your superannuation is crucial for securing your financial future. So, let’s get started!
What is PSS Super?
PSS Super is a defined benefit superannuation scheme for employees of the Australian Public Service, the Australian Defence Force, and other designated employees. It is a resilient and sustainable retirement income solution, providing financial security and peace of mind for its members. PSS Super is a trust fund that is governed by an independent trustee, Commonwealth Superannuation Corporation (CSC), and is a member of the larger Public Sector Superannuation Scheme (PSS) family.
There are three different types of PSS Super accounts available, and the type of account that a member has depends on their employment status. The three types of PSS Super accounts are:
- Accumulation Scheme: for casual, contract or non-ongoing employees
- Defined Benefit Division: for ongoing employees with a ‘defined benefit’ within the scheme
- Constitutionally Protected Division: for employees who transferred to PSS from a state-based scheme under constitutionally protected arrangements
The main difference between these account types is the way in which the benefit is calculated and the level of contribution rate. The Accumulation Scheme is a straightforward account that accumulates savings for the employee while the other two account types are based on a formula set out in law that calculates a member’s benefit based on various factors such as length of service, salary and age at retirement.
Reasons for transferring PSS Super to another fund
If you are a member of the Public Sector Superannuation (PSS) scheme, you may have found yourself considering transferring your PSS super to another fund. There are a number of reasons why you might be thinking about making the move, and here we explore them further.
- Lower fees: Depending on the investment option you have chosen within PSS, you may be paying fees that are higher than what other super funds charge. By transferring to another fund, you may be able to save money on these fees, leaving you more money for retirement.
- Greater investment choice: Another reason for transferring your PSS super to another fund is to access a wider range of investment options that are not currently available within PSS. This may include shares, property, or other asset classes that are not offered by the PSS scheme.
- Personal circumstances: Your personal circumstances may have changed since you joined PSS, and you may now need a different super fund that better meets your needs. For example, if you are planning on starting your own business, you may want to transfer your super to a fund that offers investment options that align with your business interests. Alternatively, if you are planning on moving overseas, you may want to transfer your super to a fund that can accommodate your new residency status.
While there are advantages to transferring your PSS super to another fund, there are also some things to consider before making the move. If you are considering transferring out of PSS, it’s important to understand the impact it may have on your retirement income and seek professional advice to ensure you are making an informed decision.
If you do decide to go ahead with the transfer, it’s important to make sure you understand the process. You will need to choose a new fund, fill out the necessary paperwork, and arrange for your PSS balance to be transferred to your new fund. You should also check any exit fees or other costs associated with the transfer.
| Pros of transferring PSS Super | Cons of transferring PSS Super |
|---|---|
| Lower fees | Impact on retirement income |
| Greater investment choice | Exit fees or other costs |
| Personal circumstances |
Ultimately, the decision to transfer your PSS super to another fund will depend on your individual circumstances and needs. As with any financial decision, it’s important to weigh up the pros and cons and seek advice from a qualified professional before taking action.
The Process of Transferring PSS Super to Another Fund
Transferring your PSS Super to another fund is a common practice among people who are looking to switch from the public sector to the private one or if they are dissatisfied with their current fund. In this article, we will guide you through the process of transferring your PSS Super to another fund.
- Step 1: Choose a new fund
- Step 2: Contact the new fund
- Step 3: Complete the transfer form
- Step 4: Submit the transfer form
- Step 5: Await transfer completion
Now, let’s break down each step in detail.
Step 1: Choose a new fund
The first step in transferring your PSS Super to another fund is choosing the new fund. You should consider factors such as fees, investment options, and fund performance to make an informed decision. You can seek advice from financial experts or use online comparison websites to aid your decision-making.
Step 2: Contact the new fund
Once you have chosen a new fund, you need to contact the provider to enquire about their transfer process. You should inform them that you want to transfer your PSS Super and provide your personal and account details.
Step 3: Complete the transfer form
After contacting the new fund, they will provide you with a PSS Super transfer form. You need to fill out the form that includes personal and account details, the amount of money to be transferred, and the chosen investment options.
Step 4: Submit the transfer form
After completing the transfer form, you need to submit it to the new fund provider for processing. You must also provide certified identification documents and a recent PSS statement for verification purposes.
Step 5: Await transfer completion
Once you have submitted the transfer form, the new fund provider will contact PSS to complete the process. The transfer usually takes between four to six weeks, depending on the complexity of the transaction. You should monitor the progress of the transfer and inform the new fund provider if there are any delays.
| Pros of transferring PSS Super to another fund | Cons of transferring PSS Super to another fund |
|---|---|
| Access to more investment options | May incur additional fees and charges |
| Potential for better fund performance | May lose some benefits of PSS Super |
| Greater flexibility in managing your super | May not receive the same level of security as PSS Super |
In conclusion, transferring your PSS Super to another fund is a process that requires careful consideration and planning. It is essential to choose a new fund that aligns with your investment goals and manages your transfer efficiently. If you are unsure about how to transfer your PSS Super, seek advice from financial experts who can guide you through the process.
Timeframe for transferring PSS Super to another fund
Transferring your PSS Super to another fund may be necessary to meet your changing financial needs and investment goals. The process involves moving your accumulated PSS Super balance to a new fund that better suits your needs, but how long does it typically take to complete the transfer?
- The timeframe for transferring your PSS Super to another fund can vary depending on several factors such as:
- The type of fund you are transferring to and its requirements for accepting rollovers.
- Whether or not you are withdrawing any funds as part of the transfer process.
- The time it takes for your current PSS Super fund to process and approve the transfer application.
In general, it can take between 2 to 6 weeks for the transfer of your PSS Super to be completed. However, there are cases where the transfer process may be shorter or longer depending on the factors mentioned above.
It is important to note that you should not cancel your existing PSS Super account until the transfer is fully completed to avoid any unnecessary loss of benefits or fees. Additionally, you may want to consult with a financial advisor to ensure that transferring your PSS Super to another fund aligns with your long-term financial goals.
| Factors affecting transfer timeframe | Estimated timeframe |
|---|---|
| Type of fund | 2-6 weeks |
| Withdrawal of funds | Additional time |
| PSS Super fund processing time | Additional time |
In conclusion, transferring your PSS Super to another fund can take between 2 to 6 weeks depending on factors such as the type of fund you are transferring to and whether or not you are withdrawing any funds as part of the process. To ensure a smooth transfer and avoid any unnecessary loss of benefits or fees, it is advisable to consult with a financial advisor before making any decisions.
Consequences of transferring PSS Super to another fund
Transferring your PSS Super to another fund may have various consequences that should be carefully considered before making any decision. Here are some of them:
- Loss of benefits: If you transfer your PSS Super to another fund, you may lose some of the benefits that come with the original fund. For example, some funds offer a higher return on investment or specific insurance coverage that may not be available in other funds.
- Exit fees: Some funds charge exit fees for members who decide to transfer their super to another fund. These fees can range from a few hundred to thousands of dollars, depending on the fund and the amount you are transferring.
- Tax implications: Transferring your PSS Super to another fund may have tax implications. For example, if you have accumulated a significant amount of money in your PSS Super and you transfer it to another fund, you may be subject to capital gains tax. It’s important to seek advice from a financial professional to understand the tax implications of transferring your super.
Before making any decision, it’s essential to compare different funds and assess their benefits, fees, and investment options carefully. You may also want to speak to a financial adviser to understand the impact of transferring your super on your retirement plans.
Here’s a table that compares some of the features of PSS Super with other super funds:
| Features | PSS Super | Other super fund |
|---|---|---|
| Investment options | Various options with a focus on ethical and sustainable investment | May have more or fewer investment options |
| Insurance coverage | Automatic insurance coverage for death and disability | May have different insurance coverage options |
| Exit fees | No exit fees for members with more than five years of service | May have exit fees depending on the fund and the amount being transferred |
Remember that transferring your PSS Super to another fund is a significant decision that can impact your retirement savings. Make sure you carefully assess the consequences and seek advice from a financial professional before making any move.
Comparison of different funds to transfer PSS Super
If you have decided to transfer your PSS (Public Sector Superannuation) to another fund, it is important to compare different options available to ensure that you make an informed decision. Here are some factors to consider:
- Costs: Look for a fund that has lower fees and charges. Fees can have a significant impact on the overall performance of your super fund.
- Performance: Compare the investment returns of different funds over the long-term. Find funds that have consistently outperformed their peers and benchmarks.
- Investment options: Consider the range of investment options available. Does the fund match your investment objectives and risk profile?
Once you have identified the potential funds to transfer your PSS super, you should compare them with the help of the Comparison Tool available on the Australian Government’s MoneySmart website. The tool allows you to view and compare key features such as fees, investment options, and performance of different super funds. You can also check financial ratings of various funds online on websites such as CanStar and ChantWest.
The following table compares some of the best-performing super funds available in Australia:
| Fund Name | Investment Option | Annual Fee | 5-Year Return (%) |
|---|---|---|---|
| AustralianSuper | Balanced | 0.75% | 8.96% |
| Hostplus | Indexed Balanced | 0.20% | 9.86% |
| UniSuper | Conservative Balanced | 0.69% | 8.51% |
| Cbus | Growth (Cbus MySuper) | 0.75% | 11.54% |
Remember, the decision to transfer your PSS super to another fund should not be taken lightly. It is important to consider all the available options and seek professional financial advice if necessary.
When is the right time to consider transferring PSS Super
Transferring your PSS Super to another fund can be a great option to consider, but only under certain circumstances. Here are some situations where transferring may be the right choice:
- Looking for better investment options: If your PSS Super is not meeting your investment needs or if you are looking for alternative investment options, transferring to another fund may be a good idea.
- Lower fees: If you find that your PSS Super is charging you unsustainable fees, it may be worthwhile to consider transferring to a fund that has lower fees. This could provide greater financial freedom to invest and allocate your funds as you see fit.
- Changed employment: If you switch jobs or become self-employed and no longer have access to the PSS Super plan, transferring your PSS Super to another fund may be necessary.
- Improvements in financial circumstances: If your financial situation has improved substantially and you want to make more contributions that are beyond the maximum threshold provided by the PSS Super plan, transferring to another fund may be a good option.
- Seeking more control: If you are looking for more control over your super investments, transferring to another fund that offers greater flexibility and control may be a good choice for you.
- Change in investment approach: If your investment approach has changed and you seek a fund that offers alternative investment options or that supports your new approach, then transferring may be the right decision.
- Relocation: If you are relocating to another part of the world where the PSS Super plan is not recognized or not available, transferring to another fund will be necessary
Factors to consider before transferring your PSS Super
Before transferring your PSS Super to a new fund, it is important to consider the following factors:
- Eligibility of the new fund: Ensure that the new fund you are transferring to is available and open to accepting new members and that PSS Super can be transferred to that fund.
- Costs: Be aware of the fees and costs involved in transferring your PSS Super to a new fund and that they are in line with your financial goals
- Right fit: Ensure that the new fund has the appropriate investment options and aligns with your investment objectives.
- Access to insurance: Review any insurance arrangements you may have with PSS Super and ensure that you will continue to have the appropriate level of insurance coverage upon transferring your super to the new fund.
- Investment returns: Ensure that you evaluate the investment returns of the new fund you are looking to transfer to. Evaluate historical rates of return as well as predicted rates of return to make your decision.
- Insurance options: Review your insurance options available with the new fund and verify that the level of insurance coverage that you need remains available.
Conclusion
Transferring your PSS Super to another fund is a big decision and must be thoroughly evaluated before making a final decision. Ensure that you understand the pros and cons of transferring and the potential financial implications. Seek professional advice when needed to ensure that you make the right decision for your financial future.
| Pros | Cons |
|---|---|
| Increased investment options | Costs associated with the transfer |
| Lower management fees | No access to PSS Super insurance |
| Greater control over super investments | Risk changes if investment approach changes |
| No longer tied to employer | Limited investment options in the new fund |
| Can provide access where PSS Super is not available or recognized | Potentially lower returns |
Can I Transfer my PSS Super to Another Fund?
Q: Can I transfer my PSS super to another fund?
A: Yes, it is possible to transfer your PSS super to another fund.
Q: What is the process of transferring my PSS super to another fund?
A: You need to contact your new fund and provide them with details of your PSS account. They will then initiate the transfer process.
Q: Is there any fee for transferring my PSS super to another fund?
A: There is no fee for transferring your PSS super to another fund.
Q: Will I lose any benefits or entitlements if I transfer my PSS super to another fund?
A: Transferring your PSS super to another fund may impact your benefits and entitlements. It is recommended to seek financial advice before making any decision.
Q: Will the process of transferring my PSS super to another fund take a long time?
A: The transfer process usually takes 28 days, but it may take longer depending on various factors.
Q: Can I transfer my PSS super to another fund if I am still working in the public sector?
A: Yes, it is possible to transfer your PSS super to another fund even if you are still working in the public sector. However, you may lose some benefits and entitlements.
Closing Title: Thanks for Reading!
We hope this article has been helpful in answering your questions regarding transferring your PSS super to another fund. Remember to seek financial advice before making any decision. If you have any further questions, don’t hesitate to reach out to us. Thanks for reading and visit again later for more informative articles!