Getting the most out of your State Authorities Superannuation Scheme, also known as SASS, while you’re working is a great way to feel more in control of your money and help you retire with more.
Key points
- SASS is a hybrid scheme. This means it’s a mix of an accumulation benefit and defined benefits that are calculated at retirement based on a formula.
- The accumulation benefit part is your Personal Account. The defined benefit parts are your:
- Employer Financed Benefit, and
- State Authorities Non-Contributory Scheme (SANCS) Benefit, which includes your Basic Benefit.
- SASS is now a closed scheme. Most SASS members have the general features of the scheme. Some members of previous schemes may have retained special provisions and entitlements from their old scheme.
How SASS works
SASS is a hybrid scheme. This means it’s a mix of an accumulation benefit and defined benefits, that are calculated at retirement based on a formula.
Whilst you’re working, understanding how your scheme works is important. This is because you can make decisions to maximise your super as you approach retirement.
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Your benefit is made up of 3 parts:
- Personal Account
- Employer Financed Benefit
- State Authorities Non-Contributory Scheme (SANCS) Benefit
Personal Account
This benefit is made up of your:
- member contributions of between 1-9% of your salary, which can be made before or after-tax (or a combination of both) and
- your investment earnings (less fees).
This account is subject to market returns.
Employer Financed Benefit
This is a defined benefit that’s based on a points system.
Your contribution rate to your Personal Account and your length of service determines how many points you accrue.
For each 1% of salary contributed to your Personal Account each year, you’ll accrue 1 benefit point.
How average contributions work
The maximum average benefit points you can accrue in a year is 6.
You can contribute more than 6% each year. Whether you accrue more than 6 benefit points will depend on your average contribution rate.
For example, if you had only ever contributed 1% of your salary, then started contributing at 9%, you would accrue 9 points per year, provided your average contribution rate over your membership was still below 6%.
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The maximum points your employer will allocate is 180 over 30 years of full-time service and this will equate to approximately 4.5 times your final average salary^ before contributions tax at retirement.
Your Employer Financed Benefit isn’t affected by market ups and downs.
State Authorities Non-Contributory Scheme (SANCS) Benefit
This is a combination of benefits which includes:
- the Basic Benefit,
- the additional employer contributions account, and
- any government contributions.
The basic benefit is also a defined benefit calculated based on your length of service since 1 April 1988. Each year of full-time service equals 3% of your final average salary. Other benefits within SANCS will be dependent on meeting eligibility requirements.
Your Personal Account
Your Personal Account is an accumulation account. The balance of your account is made up of:
- your member contributions, and
- the earnings on your contributions (less expenses).
Your contributions are deducted from your salary and added to your Personal Account and invested.
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Your Personal Account balance is combined with other members’ contributions into an investment pool. This pooled money is invested with the same strategy into a broad range of assets. There are 4 strategies to choose from:
- Growth
- Balanced
- Conservative
- Cash.
Contribution limits
You must contribute between 1 and 9% of your salary each year to your Personal Account.
State Super cannot accept additional contributions from members. If you’d like to contribute to your SASS account or change how much you contribute, you can do this once a year by completing the State Super contribution rate election form.
Mark the new rate with an ‘x’ and return it to State Super by 31 December. The new rate will take effect from 1 April in the coming year.
Super helpful advice
How much you contribute can have a big impact on the benefit you receive. It’s well worth talking to a financial planner from Aware Super who can help you put the right strategies in place for your retirement.
Employer Financed Benefit
The benefit point system is the link between contributions in your Personal Account and your employer financed benefit.
Each benefit point accrued provides an employer financed benefit of 2.5%* of your final average salary before-tax, at retirement.
Your employer will allocate a maximum of 180 benefit points over your working life. It takes a minimum of 30 years working full time to accrue 180 benefit points. 180 accrued points will provide an employer financed benefit of 4.5 times your final average salary before-tax.
At retirement, your employer financed benefit will be calculated based on the accrued number of benefit points you have.
Maximising your Employer Financed Benefit
Maximising your Employer Financed Benefit means you could retire with more. If you accrue less than 6 points each year, you could be missing out.
To change your contribution amount, complete this form.
To find out how many points you have accrued, check out the front page of your annual super statement.
State Authorities Non-Contributory Scheme (SANCS)
Your SANCS account can be made up of a number of benefits. The basic benefit will apply to most SASS members. Other benefits within SANCS will only apply to members who meet the eligibility criteria.
Basic benefit
The basic benefit is also a defined benefit. It’s not dependent on the amount of your contributions to your personal account and doesn’t have an upper limit.
This is a defined benefit of 3% of your final average salary on retirement for each year of service from 1 April 1988. It’s paid by your employer, with any part-year calculated on a daily basis.
Calculating your basic benefit
Since 1 July 1988, the basic benefit is about 2.55% after employer contributions tax. But this is just a guide. It will depend on:
- whether you have worked full time or part time, and
- your years of service.
For example:
- If you have worked full-time for 35 years since April 1988, the net basic benefit will be around 89.25% of your salary.
- For 32 years of full-time service, it will be around 81.6% of your salary.
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Case study - Dianne, SASS member
Dianne has worked full time as a teacher for 35 years, since April 1988. When Dianne retires, the net basic benefit will be roughly 89.25% of her salary.
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| Final Average Salary |
$100,000 |
| Years of service (Full time) | 35 |
| Defined benefit at approx. 2.55% after-tax for each year of service | 89.25% |
| Basic Benefit at retirement | $89,250 |
Even if you’ve reached 180 points and 30 years of service, your basic benefit will continue to accrue.
Other benefits within SANCS eligibility requirements
The super co-contribution
Government co-contributions to super can help people on middle or lower incomes to have more money when they retire.
By contributing between $20-$1,000 to your super from your take-home pay, the government could match your contribution, up to $500.
Explore government co-contributions
The Low Income Superannuation Tax Offset
This is a tax refund of up to $500 each year for low-income earners. You could be eligible for a refund of the contributions tax deducted from your superannuation account if:
- you earn less than $37,000 a year
- you or your employer makes concessional (before tax) contributions.
Additional Employer Contributions
Some members of SASS are also eligible to receive Additional Employer
Contributions. The laws requiring these to be paid came into effect on 19 December 2014. Contributions, plus investment earnings form the Additional Employer Contribution benefit.
The Additional Employer Contributions have been payable since 1 July 2013.
Additional Employer Contributions started at 0.25% p.a. from 1 July 2013 and gradually increased in line with super guarantee increases to reach 2%for 2023/24.
It will continue to increase by 0.5% each year until reaching 3% in 2025/26. Your employer will pay these additional contributions into your SASS account.
Maximising your SASS benefit
Maximising your SASS benefit is a great way to ensure you have the financial security you need once you retire. You might think your ongoing contributions don’t make that much difference to your final benefit, but a little goes a long way. The more you contribute (up to 9% of your superable salary) the more you’ll get once you exit. Explore how to maximise your benefit:
Here are 3 strategies to think about when maximising your SASS benefit:
- salary sacrificing
- catching up on points
- maximising your salary.
Salary sacrificing
Salary sacrificing is a great way to reduce the amount of tax you pay on your SASS contributions. You can choose to pay 15% tax on your SASS contributions, instead of paying tax that you would normally pay with your employer, which could be up to 47%*.
Catching up on your points
If you’ve fallen behind on your SASS points and your accrued points are less than your maximum points, you can catch up by increasing your contribution rate to above 6%.
To maximise your employer financed benefit, you need to contribute an average of 6% each year.
For example:
- If you increase your contributions to 9%
- you can accrue 6 points, plus
- an additional 1 point for every 1% you contribute, up to 3 points.
Case study – Carl, 57 years old
Carl is 57 and plans to retire in 5 years. He has accrued 135 points after 30 years of service. If Carl doesn’t change his contribution rate, the maximum points he can accrue are 165 points. Carl could maximise his benefit over the next 5 years by increasing his contribution rate from 6% to 9%.
How Carl increases his points balance
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| Carl’s contribution rate |
9% |
| Accrued points after 5 years |
180 |
| Total years of service | 35 years |
Assumptions
- This example assumes Carl will work full time over the coming 5-year period.
- Carl will not take any leave without pay.
How this is calculated
- 135 points + 5 years x 6% contribution. After 35 years account points would have increased to 165.
- 135 points + 5 years x 9% contribution. After 35 years accrued points would have increased to 180.
You can still catch up
If you have been contributing less than an average of 6% each year over your membership, you can still catch up.
Even if you’ve reached 180 points and 30 years of service, your basic benefit will continue to accrue.
Maximising your final average salary
Your Employer Financed Benefit and Basic Benefit is based on a calculation that includes:
- your final average salary, which is the average of your salary when you exit SASS, and
- your salary at 31 December for the previous two years.
Retiring after a pay rise or in a new year may increase your final average salary and give you a higher retirement benefit.
The right strategy for you depends on your individual circumstances and your retirement goals. Before you make any decisions about your retirement plan, it’s a good idea to talk to a financial planner.
What benefit do I receive in the scheme once I accrue 180 benefit points?
Once you reach 180 points, there are three ways you could increase your benefit before you retire:
- salary increases that are included in your final average salary at retirement
- positive investment returns
- contributing to your personal account, up to 9%
180 accrued benefits points is the maximum points you can accrue.
For members with the standard features of SASS, this will be a benefit at retirement of:
- 4.5 times final average salary before employer contributions tax, or
- around 3.8 times your final average salary, after employer contributions tax.
This is paid as a lump sum. However, if you’re a member of a previous closed scheme you may have the option to a lifetime pension. Some existing features may have been transferred to your new SASS account.
With SASS, it is a fixed formula, with a maximum points limit. It’s different to an accumulation scheme, where your employer is making contributions as a percentage of your salary every year which is being invested.
An example
A member who has reached 180 accrued benefit points and has a final average salary of $100,000, can expect an employer financed benefit of:
- 180 x 2.5% x $100,000 = $450,000. This is before contributions tax, and
- 180 points x 2.155% x $100,000 = $387,900. This is after contributions tax.
In this example, if the member continues to work for 5 more years and receives an increase in their superable salary, with a final average salary of $110,000, they can expect:
- an employer financed benefit of 180 x 2.5% x $110,000 = $495,000. This is before contributions tax, and
- 180 points x 2.155% x $110,000 = $426,690. This is after contributions tax.
Once you reach 180 points and 30 years of service:
- your Basic Benefit will continue to accrue
- your Additional Employer Contribution will also continue to accrue
- your Personal Account will continue to accrue.
Your benefit estimate is itemised in your annual statement under the heading "Your retirement benefit".
To find out ways to maximise your SASS benefit once you reach 180 points, watch our video on what it means to reach 180 points.
Closed schemes and additional features
Some SASS members were transferred from a closed scheme. Wherever a feature of the closed scheme was more beneficial than the standard SASS benefit, these members kept these benefits. If you were previously a member of one of these closed schemes, your special conditions or features are shown in the below table.
Your member number in the table below is an indication of membership of a previous scheme.
Scroll across this table to learn more.
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| Closed original fund | Member number range | Contribution percentage range | Earliest retirement age in SASS | Do I have a pension option | Special conditions/additional information |
|---|---|---|---|---|---|
| State Authorities Superannuation Scheme (SASS) | 6,xxx,xxx | 1%–9% | 58 | No | SASS benefit |
| Public Authorities Superannuation Scheme (PASS) | 6,xxx,xxx | 1%–9% | 58 | No | SASS benefit |
| State Public Service Superannuation Fund (SPSSF) |
1,5xx,xxx |
1%–9% |
55 | No | Employer financed benefit calculated at 3% x accrued benefit points x final average salary Additional Benefit Cover only applicable to age 55. Max accrued points 162 up until age 55 then points accrue again until reach 180. |
| New South Wales Retirement Fund (NRF) | 5,xxx,xxx 6,xxx,xxx |
1%–9% | 58 (60 if pension required) | On retirement at or after age 60. Pension can be taken with or without a residual spouse pension. Spouse pension equal to 62.5% of member’s pension at date of death. Death where eligible spouse. No children’s pension payable. |
Pension is based on all or part of Employer Financed Contributor Financed Benefit is payable as a lump sum. |
| Transport Gratuity Scheme (TGS) | 6,xxx,xxx | 1%-6.7% | 58 | No | The TGS gratuity forms part of the Employer Financed Benefit, but it is not paid if the exit is resignation, dismissal or discharge. The ‘gratuity’ = 2.3 free benefit points each year (i.e. member doesn’t contribute for them). Gratuity points cannot be deferred, contributed points can. |
| Transport Retirement Fund (TRF) | 7,xxx,xxx | 1%-9% | 58 (60 if pension required) | On retirement at or after 60. Pension can be taken with or without a residual spouse pension. Spouse pension equal to 62.5% of pension being paid at date of death. On total and permanent invalidity. No children’s pension payable. |
Pension based on all or part of Employer Financed Benefit (and Additional Benefit if applicable) only. Contributor Financed Benefit is payable as a lump sum. Spouse pension only available on death of pensioner. Not available on death of member. |
| Provident Fund | 4,1xx,xxx to 4,4xx,xxx | 1%-9% | 58 (60 if pension required) | On retirement at or after 60. On total and permanent invalidity. Death where eligible spouse. Always reversionary pension benefits equal to 62.5% of the pension being paid at date of death. Children’s pension payable. |
Pension based on all or part of the Employer Financed Benefit (and Additional Benefit if applicable) only. Contributor Financed Benefit is payable as a lump sum. It total and permanent invalidity or death – pension includes guaranteed pension points if applicable. |
| 4,8xx,xxx | 1%-9% | 58 | No | ||
| 4,85x,xxx | 1%-9% (3.5% default rate for variable rate members) | 58 | No | ||
| Local Government Pension Fund | 4,5xx,xxx | 1%-9% | 58(60 if pension required) | On retirement at or after 60. On total and permanent invalidity. Death where eligible spouse. Always reversionary pension benefits equal to 62.5% of the pension being paid at date of death. Children’s pension payable. |
Pension based on all or part of the Employer Financed Benefit (and Additional Benefit if applicable) only. Contributor Financed Benefit is payable as a lump sum. It total and permanent invalidity or death – pension includes guaranteed pension points if applicable. |
| Benefits Fund | 4,1xx,xxx to 4,4xx,xxx | 1%-9% | 58 (60 if pension required) | On retirement at or after 60. Death where eligible spouse. Always reversionary pension benefits equal to 62.5% of the pension being paid at date of death. Children’s pension payable. |
Pension based on all or part of the Employer Financed Benefit (and Additional Benefit if applicable) only. Contributor Financed Benefit is payable as a lump sum. It total and permanent invalidity or death – pension includes guaranteed pension points if applicable. |
| 4,9xx,xxx | 1%-9% | 58 | No | Minimum Employer Financed Benefit of ‘Notional Accumulation’ Account. | |
| 4,95x,xxx | 1%-3%, 3.5%, 4%-9% (3.5% default rate) | 58 (women 55 if compulsorily transferred to SASS with ‘495’ nos.) | No | Minimum Employer Financed Benefit of ‘Notional Accumulation’ Account. |
Lifetime indexed pension entitlement
SASS members who are former members of the following funds have the option of taking their employer financed benefit as a pension:
- NSW Retirement Fund (NRF)
- Transport Retirement Fund (TRF)
- Local Government Pension Fund (LGPF)
Railway Super Account (RSA), also known as the Ten and a penny scheme may be eligible to receive all, or part of the Employer Financed benefit component of their SASS benefit as an indexed fortnightly pension. Lifetime indexed pension entitlements are an option for these members instead of a lump sum payment, but they can still take a lump sum if they wish.
These pensions are payable for life and indexed for inflation.
There may also be a reversionary pension entitlement for an eligible spouse or a dependent child.
Explore lifetime indexed pension entitlements
To see if you have a pension option, check your annual statement.
State Public Service Superannuation members
Former members of the State Public Service Superannuation Fund have a scheme earliest retirement age of 55. Their employer will allocate:
- maximum benefit points of 162, to accrue at age 55
- 6 points per year from age 55, to a maximum of 180 points at age 58.
Each benefit point equates to 3% of their final average salary, which is more than the 2.5% for standard members of SASS. Before the age of 55, the standard 2.5% applies if your exit is due to:
- resignation
- dismissal, or
- discharge.
Where to next?
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