Ask an expert

Q: Contributing: I’m 57, a SASS member, and I reached my 180 point milestone at my 30 year work anniversary last year. I’m planning to retire in a few years. Am I worse off staying in SASS instead of receiving Super Guarantee contributions from my employer?

Reaching 180 points in SASS means you’ve hit the maximum points your employer will allocate, which is a big milestone. From that point on, it’s true that the rate at which your overall benefit grows usually slows down, but it doesn’t stop growing.

Let’s look at the ways your benefit can continue to increase? First, your employer benefit will continue to increase in-line with any salary increases you have, as your employer benefit is calculated on your final average salary (the average of your salary at the time you leave employment and the two prior 31 December salaries). 

Your SANCS benefit also continues to accrue at 3% (before tax) or approx. 2.55% after tax and is generally based on your final average salary for each year of service since 1 July 1988. On top of that, if you’re eligible, you’ll receive the Additional Employer Contribution (AEC), which is 3% of your superable salary in 2025/26.

One important advantage of SASS is certainty. The defined benefit component isn’t invested in the market, so it isn’t affected by ups and downs in investment returns. Instead, it’s calculated using a formula, which means you know how your benefit is calculated, and you aren’t exposed to market volatility as you approach retirement.

There’s also a safeguard built in. When you eventually leave SASS — whether you defer, roll over, cash out, or in the event of a death benefit — your employer funded SASS benefit is checked against what you would have received under Super Guarantee rules. If the SASS benefit is lower, the employer must top it up with a Super Guarantee shortfall payment. If applicable, any expected shortfall is shown on your annual statement.

Finally, most SASS members must keep contributing to SASS while they’re employed by a participating employer, up until resignation, retirement, or age 65. In most cases, you can’t opt out of SASS and ask your employer to start paying Super Guarantee contributions.

Here’s the bottom line: being in SASS after reaching 180 points doesn’t necessarily mean you are at a disadvantage. Most SASS members will get more than the minimum Superannuation Guarantee employer contribution through their SASS employer-financed benefit plus SANCS, your basic benefit and AEC. While growth slows, your benefit keeps building, you’re protected from investment risk on your defined benefit component of your benefit, and there’s a back stop to ensure your minimum super entitlements are met.

Q: Contributing: Should I take leave, or have it paid out as a lump sum before the end of financial year?

It's a question we hear from members all the time — and getting the answer right could make a real difference to your retirement. 

It doesn't matter if retirement is way off or just around the corner​ — if you've got accrued leave, it's worth thinking carefully about what to do with it. A lump sum payout might feel like the easy choice. But in many cases, taking your leave as actual time off before you retire can leave you better off. Here's why. 
 

Taking your leave could help boost your SASS benefit

Here's something that surprises a lot of members: staying on the books while you're on leave could actually improve your final SASS benefit.

Your employer financed benefit is a defined benefit based on a points system. Both your contribution rate to your personal account and your length of service will determine how many points you accrue, up to a maximum of 180 points.

If you haven't yet hit 180 points, every extra week you remain employed — even on leave — counts.

If you take long service leave, your SASS benefit continues to accrue as normal, regardless of whether your long service leave is taken at double-pay, normal or half-pay rates. This means that contributions remain payable at the normal rate, and benefit points continue to accrue at normal rates.

If you retire first and take your leave as a lump sum, your employment ends on that date — and so does your point accrual. It's a small difference in timing that could have a big impact on your benefit.
 

Taking leave may reduce the tax you pay

When you take leave as time off, your income is spread across pay periods and may even stretch across two financial years. That's usually a good thing, because it can keep you in lower marginal tax brackets and reduce the overall tax you pay.

A lump sum payout, on the other hand, gets added on top of all your other income for the year — which can push you into a higher tax bracket and mean more tax overall.

Timing is everything — especially around 30 June

When you retire matters just as much as how you take your leave. As a general rule of thumb:

• You usually don’t want to retire just before 30 June.  
• Try to avoid taking a large lump sum leave payout in the same financial year that you retire, if you can help it. It can push your total income for that year much higher than usual. 
• Waiting until July, or taking leave before you retire, often produces a much better tax outcome — especially when income would otherwise be heavily concentrated in one year.

It's a small shift that could make a big difference in the long run.

Already reached 180 points? There's still plenty to consider

If you've already hit the 180 point maximum, benefit point accrual is no longer a factor — but that doesn't mean the timing of your leave stops mattering. Here's what's still at play:

Your basic benefit and additional employer contribution keep growing

Even at 180 points, staying employed while on leave has its advantages. If you are already at 180 accrued benefit points, the salary ratio will not impact your points but will still affect the rate of accrual of your basic benefit and if you are eligible additional employer contribution (AEC), if applicable. In other words, while you're relaxing on leave, your basic benefit and AEC (if eligible) are still ticking along — and that stops the moment you retire.

Your final average salary still matters

Your final average salary is your salary on your exit date plus the salary reported by your employer on 31 December for the previous two years added together and divided by 3. Your final average salary is also used in the calculation of your basic benefit. 

By staying employed through leave, you keep control over your exit date — which can be really valuable if a pay rise is on the horizon. Retiring after a pay rise or in a new year may increase your final average salary and give you a higher retirement benefit. 

For members at 180 points, the end of financial year consideration is less about point accrual and more about:

• Maximising final average salary by choosing the right exit date.
• Minimising tax by avoiding a large lump sum leave payout in the same financial year.

The right choice depends on you

There's no one-size-fits-all answer here. The best option will always come down to your personal circumstances — including your benefit points, income level and retirement plans.

As a SASS scheme member, you have some great opportunities to maximise your benefit in the years leading up to your retirement. It's important to know what your choices are and the steps you can take to maximise your SASS benefit. 

Defined benefit schemes like SASS are complex, so you should consider getting tax or financial advice before finalising retirement timing.  

Thinking about retiring soon? Talk to us first.

The timing of your retirement — and how you take your leave — can affect both your SASS benefit and the tax you pay. Before you make any decisions, it's a great idea to speak with an Aware Super financial planner who can help you make an informed decision that is right for you.

Your first appointment with an Aware Super financial planner is free of cost or obligation. Book an appointment at aware.com.au/statesuperadvice or call 1800 841 633.

Q: Deferred: I’m a bit nervous about how volatile the market is. How do I check my investment option, and what should I do if I want to change it?

When markets are volatile, it can be tempting to switch your investments or move into cash. Before making any changes, it’s worth understanding how your SASS benefit is currently invested and what your options are. Here are the steps we’d recommend taking: 
 

Find out what investment option you’re in

As a SASS deferred member, if you haven’t previously chosen an investment strategy, your personal account and employer-financed benefit are automatically invested in the default Growth option. Once you reach age 60, this automatically switches to the Balanced option.

Your SANCS lump sum basic benefit is invested by the Trustee (State Super) and is not subject to your investment choice.

Not sure which strategy you’re invested in? No problem. You can find out by:

1. Logging in to your member account at statesuper.nsw.gov.au and viewing your account details, or
2. Checking your most recent Annual Benefit Statement, or
3. Calling State Super on 1300 130 094  
    

Learn more about your investment options

There are four strategies to choose from. You can invest in one option or split across any combination, as long as the proportions add up to 100%.

• Cash: Very low volatility, limited growth. Suited to members with a short-term horizon (up to 3 years) who want stability.
• Conservative: Low-to-medium volatility. Suited to members with a 4-year horizon who prefer security over growth.
• Balanced: Medium-to-high volatility, moderate growth. Suited to those with a 5–7 year horizon.
• Growth: High volatility, high growth potential. Suited to members with a 7+ year horizon.
   

Get some advice

Not sure which option is right for you? An Aware Super financial planner can provide advice tailored to your personal situation, goals and life stage. Your first appointment is at no cost or obligation. To book an appointment visit aware.com.au/statesuperadvice or call 1800 841 633.
 

Want to switch? Here’s how

You can switch your investment strategy once per month. Here’s how:

1. Download and complete SASS Form 409: Choice of Investment Strategy from statesuper.nsw.gov.au.
2. Send the completed form to Mercer Administration (contact details are on the form).
3. Make sure your form is received by Mercer on or before the 25th of the month. Your new strategy will take effect on the last day of that month.

Your first switch in a financial year is free. Any additional switches will incur a $25 fee, deducted from your account.

Don’t forget, if you have questions or need a hand, we’re here to help. Visit aware.com.au/statesuperadvice or call 1800 841 633.