Download the Your APSS Pension Product Disclosure Statement, which you can find in the Product disclosure section of this site.
You can start receiving regular payments from your super before you retire, as you transition to retirement (TTR), using the APSS Pension, provided you have reached your preservation age and are still working. You might want to do this if you want to reduce your working hours and maintain your income, or boost your retirement savings before you retire.
If you’re an employee member, you can use up to 50% of the current value of your APSS Defined Benefit (less any Offset accounts) to open your APSS Pension as part of your TTR strategy. But first you must use up any balance/s you have in a Member Savings account.
Pete is 59 and is nearing retirement and his Defined Benefit is $214,500. He also has an employee Member Savings account balance of $50,000.
Before he retires, Pete opens an APSS Pension to receive income payments of $10,000 a year for five years. To achieve this, he needs to invest about $120,000 in his APSS Pension account. This will mean his yearly income of $10,000 is between the minimum and maximum amounts allowed by the Government.
Pete uses the $50,000 in his Member Savings account, plus $70,000 from his Defined Benefit to start his APSS Pension for TTR purposes.
The maximum amount of his Defined Benefit that he could have used would be $107,250 (50% of the Defined Benefit).
An Offset account is also set up with an opening balance of $70,000. This account will increase (or decrease) due to interest earned or charged based on the Crediting Rate for the investment option Pete has chosen for his APSS Pension account.
When Pete retires in five years’ time, the balance of his Offset account will be deducted from his Defined Benefit.