L​ump sum conversion ​​​factor (Pre 94)

Member Contributio​​​n Account

A contribution account exists for each member of the Contributory Scheme. Member contributions plus interest (calculated at the fund earning rate) are credited to the account, less any death and incapacity premiums or taxes.

Member Contr​​ibution Offset Account

This account represents the accumulation of contributions, interest and any other amounts owing to or by the Fund.  If a member has a Member Contribution Offset Account it will be shown in their annual member benefit statement. 

A positive balance indicates that excess contributions may have been paid.

A negative balance in this account indicates that contributions are owing to the Fund by the member.

Members have the following payment options:

• pay the debt in full or over several part payments; or
• authorise RBF to instruct the member's employer to deduct extra contributions in instalments from the member's salary and send to RBF; or
• defer payment until the member takes their retirement benefit.

If the Member Contribution Offset Account is negative (in debt) when a member ceases membership of the Scheme, the debt must be paid prior to the benefit being processed.

If the Member Contribution Offset Account debt cannot be discharged by cashing all of the unrestricted non-preserved benefit, the outstanding debt may be reduced by:

1. paying a non-concessional contribution; and / or
2. arranging for the payment of a rollover of superannuation from a complying superannuation fund to the Scheme.
   

Minimum Requisit​e Benefit

The Superannuation Guarantee (Administration Act) 1992 (SGAA) requires employers to provide employees with a minimum amount of employer superannuation on a quarterly basis.  The minimum requisite benefit (MRB) is calculated in accordance with the Benefit Certificate issued by RBF's Actuary in compliance with the SGAA.  If membership of the scheme ceases and the amount of the members defined benefit is less than their MRB, the defined benefit will be automatically increased (topped up) to equal the MRB amount.

Part-time P​​​roportion

The Part-time Proportion is calculated as the period of actual service (including allowance for periods of part-time service) divided by the total period of service calculated as though the member was always full-time.

Pension conversion​​ factor

For Post 94 members, pension conversion factors are used to determine the commencing annual value of the RBF Life Pension.​  Please refer to the below factsheet for the current Life Pension factors:

  RBF_Life Pension conversion factors   (292Kb).

​The factors are set by the Trustee from time to time based on actuarial advice. The relevant pension conversion factor is determined by age, gender and if it is taken as a reversionary (to have a pension revert to the surviving partner on death) or non-reversionary pension.

For Pre June 1994 members, the pension conversion factor is 12 if the member chooses to convert all or part of their lump sum to a Contributory Scheme Life Pension when they:

• retire or accept a redundancy from the State Service on or after attaining preservation age, or
• retire on the grounds of Permanent Incapacity, or
• exercise Option 1a (Regulation 34) to retain access to the pension conversion factor of 12 in the case of redundancy before preservation age, or
• die.

In the above circumstances the pension conversion factors are used to calculate any surcharge debt reduction if a member has a Surcharge Account only and elects to take 100% of their benefit as a Contributory Scheme Schedule 1 Life Pension or a Regulation 102 Life Pension, in which case the balance of the Surcharge Account will be deducted from the SAF Account first.  If this is insufficient the gross life pension will then be reduced. The amount of the reduction is equal to the outstanding debt divided by the pension conversion factor applicable to age and gender.

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Pre 94 Prospecti​​ve Incapacity Multiple

This multiple is used in the calculation of the Total and Permanent Incapacity benefit (Option 2 - Schedule 1).

The Pre 94 Prospective Incapacity Multiple is calculated as the Prospective Accrual Rate (see below) multiplied by the period of prospective service multiplied by the Part-time Proportion (if employed on a part-time basis at the time of incapacity).

The Accrual Rate varies for different contribution rates, as shown in the table below:

Prospective service is the period (in years and days) from the day following the date of cessation of employment to:

for Pre 1/4/87 members:

• Age 60 if a Police Officer, or
• Age 60 if a female who commenced as a permanent full-time employee prior to 1/7/82, or
• Age 65 for all other members.

for a Post 31/3/87 Member,

• Age 55.
  

Pre 94 Prospective PPI Multiple

The Pre 94 Prospective PPI Multiple is used in the calculation of the Partial and Permanent Incapacity benefit.

The multiple is calculated as the Prospective Accrual Rate (see below) multiplied by the period of prospective service multiplied by the Part-time Proportion (if you are employed on a part-time basis at the time of incapacity).

The Accrual Rate varies for different contribution rates, as shown in the table below:

Prospective service is the period (in years and days) from the day following date of cessation of employment, to:

• age 60 for a Pre 1/4/87 member,
  
• age 55 for a Post 31/3/87 member.

Prospective Death o​r Incapacity Benefit Multiple

The Prospective Death or Incapacity Benefit Multiple is used in the calculation of any Death or Permanent Incapacity benefits.

This multiple is calculated as the Prospective Accrual Rate (see below) multiplied by the period of prospective service multiplied by the Part-time Proportion (if employed on a part-time basis at the time of death or incapacity).

Prospective service is defined as the period (in years and days) from the day following the date of death or cessation of employment, to age 60, subject to a maximum period of 25 years.

The Accrual Rate varies for different member types and contribution rates, as shown in the tables below:

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Prospective Re​​dundancy Multiple

The Prospective Redundancy Multiple is used in the calculation of Redundancy benefits if aged between 60 and 65 years.

Prospective service is the period (in years and days) from the day following the date of cessation of employment on the grounds of redundancy (on or after age 60) to age 65. A member must be at least age 60 when employment ceases, if under age 60 at the date ceased employment then prospective service is zero.

The Prospective Redundancy Multiple is calculated as prospective service multiplied by the full-time equivalent service divided by actual contributory service, multiplied by the Prospective Accrual Rate (see below).

The Accrual Rate varies for different contribution rates, as shown in the table below:

Invest​​ment 12 Account

Investment 12 Accounts are created if a Pre 1 July 1994 member who has not reached preservation age and elects to preserve their redundancy benefit in the Contributory Scheme in order to retain access to the pension conversion factor of 12 to use at a later date.  When the member retires from the workforce on or after they have attained preservation age they can elect to use all or part of the Investment 12 Account balance to purchase a fully funded RBF Life Pension calculated using the pension conversion factor of 12.

As at the date of redundancy, the member must be less than preservation age. The employer component of the Contributory Scheme redundancy benefit is transferred to a Contributory Scheme CPA 12 and the funded component is transferred to your Investment 12 Account in the Contributory Scheme.

Your Contributory Scheme CPA 12 account is funded by the former employer when the member reaches preservation age (or before preservation age if a condition of release has been met). On funding, the balance of the CPA 12 Account is transferred to the Investment 12 Account where it is subject to a once-off contributions tax deduction.

A letter will then be issued and will provide details of the benefit options including:

1. the use of all or part of the Investment 12 Account to purchase an RBF Life Pension calculated using the pension conversion factor of 12; or
2. continue to preserve the entire (100%) Investment 12 Account in the Scheme in order to retain access to the pension conversion factor of 12;
3. rollover all or part of the benefit to a complying fund; or 
4. a cash lump sum from the unrestricted non-preserved component of the benefit.

The pension conversion factor of 12 can only be accessed once. ​​An election to convert all or part of the Investment 12 Account to a fully funded life pension must be recieved before rolling over or cashing part of the benefit otherwise the pension conversion factor of 12 will be forfeited.

If this occurs any RBF Life Pension will be calculated using actuarial pension conversion factors. These pension conversion factors have regard to age, gender and election as to if the pension will be reversionary or non-reversionary.

The difference is significant, for example the current RBF reversionary life pension conversion factor for a 60 year old is 21.28 for a male and 20.90 for a female. Using these factors, if a member elected to convert $600,000 to a RBF Life Pension the reversionary life pension would be $29,195 per annum for a male and $28,599 per annum for a female.   If the right to use the pension conversion factor of 12 was retained, the pension would be $50,000 per annum.

RBF Life ​Pension

The RBF Life Pension is a fortnightly pension paid until death and, in the case of a reversionary life pension, the life of a surviving partner (at a reduced rate). The RBF Life Pension is indexed twice yearly in line with the Consumer Price Index (CPI).

An RBF Life Pension may be purchased using all or part of an:

1. Investment 12 Account (in which case the RBF Life Pension will be calculated using the pension conversion factor of 12*); or
2. Contributory Scheme CPA**; and
3. Rollover superannuation benefits** from any other superannuation funds that are transferred to the Contributory Scheme for the purpose of purchasing an RBF Life Pension **.

One or more of the following conditions need to be met for the release of superannuation benefits:

1. the member retires permanently from the workforce on or after they have reached preservation age; or
2. the eligibility criteria are met for the payment of benefits on the grounds of total and permanent incapacity or terminal illness; or
   
3. death (in which case the surviving partner may purchase an RBF Life Pension).
   

* Contributory Scheme CPA 12 and Investment 12 Account holders must comply with the requirements to retain access to the pension conversion factor of 12. They have a once-off right to use all or part of the Investment 12 Account to purchase a reversionary RBF Life Pension using the pension conversion factor of 12. To exercise this right they must elect to convert all or part of an Investment 12 Account to a fully funded life pension before rolling over or cashing part of their benefit otherwise they will lose access to the pension conversion factor of 12.

** The actuarial pension conversion factor is determined by age, gender and choice as to whether the life pension is to be reversionary or non-reversionary.

Regulation 102 Ex​cess Contributions Account

If a member's contribution rate(s) is different to the rates available under previous scheme rules (i.e. 2.5%, 5%, 8% or 11%), the excess contributions will be refunded to them as part of any Regulation 102 benefit. This account represents the accumulation of excess contributions plus earnings calculated using the Defined Benefit Earning Rate.

Regulation 102 Pension Multiple

The Regulation 102 Pension Multiple is used to calculate a Retirement pension benefit in accordance with former scheme rules as prescribed by the repealed Retirement Benefits Act 1982.

The multiple is calculated as contributory service (in years and days) multiplied by the accrual rate that corresponds to the contribution rate (during that period of contributory service) multiplied by the employment percentage (for the period). These multiplications are repeated and accumulated for each distinct period of contributory service whenever there is a change in contribution rate, accrual rate, employment percentage or contributory service. The Regulation 102 pension multiple is subject to a maximum of 0.66667.

The Accrual Rate varies for different member contribution rates, as shown in the table below:

The contribution rates detailed above were the only rates available under the previous scheme rules. Where a members contribution rate after 1 July 1994 is different to the available rates quoted above, the contribution rate will be reduced to the nearest contribution rate in the table for purposes of calculating the Regulation 102 Pension Multiple (e.g. if the current contribution rate is 7%, the Accrual Rate will be at the 5% rate in the above table). Where this occurs the amount of the excess contributions and earnings on those contributions will be refunded to the member as part of the Regulation 102 benefit (see Regulation 102 Excess Contributions Account for more information).

Regulation 102

This regulation exists to ensure Pre 94 members are not disadvantaged by the conversion of the Contributory Scheme to a lump sum based scheme with Contributory Scheme Life Pension options on and from 1 July 1994.

Retrospective Service - Deferred Payment

If a member has previously elected to purchase service but deferred payment of the required cost, the cost of the retrospective service is included in the Member Contribution Offset Account and is deducted from the final benefit (unless the member chooses to pay the cost prior to ceasing employment or revokes the election to purchase the retrospective service). The deferred cost accrues interest at a rate set by the Commission from time to time based on actuarial advice.

SAF Account

The SAF Account is the accumulated balance of the notional 3% employer contributions to the Superannuation Accumulation Scheme Account as at 30 June 1994, plus accumulated earnings since 30 June 1994 using the greater of the Consumer Price Index (CPI) or Average Weekly Ordinary Times Earnings (AWOTE).  The Superannuation Accumulation Scheme Account was a Scheme created by the SAF Agreement referred to in section 71A(1) of the repealed Retirement Benefits Act 1982.

Schedule 1

This is a Contributory Scheme Life Pension designed to ensure that the Contributory Scheme Life Pension benefits of Pre 94 members are no less than the equivalent Contributory Scheme Life Pension payable under the former scheme rules immediately before 1 July 1994.

Scheme Benefit Date

The Scheme Benefit Date will be the same date as the Benefit Accrual Date in all cases except where a member has purchased periods of non-contributory service that commenced before the Benefit Accrual Date.  If a period of non-contributory service is purchased that commenced before the Benefit Accrual Date, the Scheme Benefit Date is then adjusted to reflect the additional contributory service to be recognised for benefit calculation purposes.

Superannuation Guarantee Notional Account

The Superannuation Guarantee Notional Account is used in the calculation of the Minimum Requisite Benefit (for the purpose of Part 3, Section 22(2) of the Superannuation Guarantee (Administration) Act 1992) and is equal to the accumulated value of employer superannuation guarantee contributions plus earnings calculated in accordance with the Contributory Scheme Benefit Certificate and Public Sector Superannuation Reform Regulations 2017.

Surcharge Account

The Surcharge Account (previously called Higher Income Surcharge Debt Account) represents the accumulation of Surcharge Assessments received from the Australian Tax Office. The balance of the Surcharge Account is reduced by the amount of any offset made to reduce or discharge this account.​

The balance of the Surcharge Account is increased annually by interest. The interest rate is the ATO earning rate.  Interest is calculated once each financial year as at 30 June. A full year's worth of interest is calculated on the basis of the Surcharge Account balance as at 30 June.

To reduce all or part of the Surcharge Account by paying an offset contribution, it is recommended to ensure that any offset contribution is received before 30 June.

If the Surcharge Account is in debt when Scheme membership ceases, the debt will be deducted from the gross lump sum benefit.

Superannuation surcharge

The superannuation surcharge is a tax on certain contributions (primarily employer contributions) made between 20 August 1996 and 30 June 2005 on the behalf of higher income earners.  Details of any outstanding surcharge debt are detailed in the Annual Member Benefit Statement.

Tasmanian Ambulance Service Superannuation Scheme terms

Accrual Rate

Your Accrual Rate varies for different periods of membership and for different member contribution rates, shown in the following table:

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Accrued Re​​​tirement Multiple

Your Accrued Retirement Multiple is calculated by multiplying your fulltime equivalent service calculated in years and completed months by the Accrual Rate that corresponds to your contribution rate for each distinct period of contributory service. These multiplications are repeated and accumulated for each distinct period of contributory service whenever there is a change in your contribution rate, accrual rate, employment percentage or contributory service. Any part-time service is converted to fulltime equivalent service and leave without pay is taken into account when determining service.

Company ​​Basic Account

Your Company Basic Account is a notional account representing the accumulation of contributions equivalent to those that you would have contributed under the old rules.  Earnings are calculated using the Defined Benefit Earning Rate.

Contri​​bution rate

You are required to contribute a minimum of 5% of salary. You may choose to contribute non-concessional (post tax) contributions or concessional salary sacrifice contributions (pre tax).  If you contribute salary sacrifice contributions your actual contribution rate is grossed up to allow for the deduction of 15% contributions tax.  You can increase your contribution rate in July each year by multiples of 1% to a maximum of 11% of salary (12.9412%) if paying salary sacrifice contributions.

Contributions

Members or employers cannot contribute to the Tasmanian Ambulance Service Superannuation Scheme once reaching age 65.​

Death and TPD Mu​​ltiple

Your Death and TPD Multiple is used to calculate your death, terminal illness and permanent incapacity benefit where RBF is satisfied that you ought to be retired on the grounds of permanent incapacity, have a terminal illness or you die.

Your Death and TPD Multiple is equal to your Accrued Retirement Multiple plus your prospective service Death and TPD multiple if you are less than age 55 when RBF is satisfied that you ought to be retired on the grounds of  permanent incapacity, you have a terminal illness or you die.  Your prospective service Death and TPD multiple is equal to 19% of your salary multiplied by your future service (calculated in completed years and months) from the date of calculation to the date of your 55^th birthday, multiplied by your part-time ratio or State Service Accumulated Leave Scheme (SSALS) ratio at the date of calculation. 

Discount Age​​ Factor

Your Discount Age Factor is used in the calculation of your Minimum Requisite Benefit. It is a reduction of 1.5% for each year (and complete month) that your age at calculation precedes age 65, subject to a maximum reduction of 30% at age 45.

Early Wit​​hdrawal Factor

Your Early Withdrawal Factor is used in the calculation of your Resignation benefit.  Your Early Withdrawal Factor is a reduction of 2% compounded for each year (and complete month) that your age at date of calculation precedes age 50, subject to a maximum reduction of 25% at age 35. The Early Withdrawal Factor for each age are as follows:

Family Law D​​ebt Account

Your Family Law Debt Account represents the accumulation of your Family Law splits paid by the Fund on your behalf at the time the Family Law Court Order became effective. Your Family Law Debt Account accrues interest at the Defined Benefit Earning Rate.  The balance of your Family Law Debt Account is deducted from your gross lump sum benefit when you cease membership of the Scheme.

Final Average Salary

Your Final Average Salary is the average of your annual review salaries at 1 July over the three years prior to the date of leaving service or the date of calculation. If you are a former shift-worker your Final Average Salary means the average of the highest three consecutive years of salary prior to the date of leaving service.

Former Schem​​​e Accrued Retirement Multiple

As you joined the former Scheme on or before 30 June 1996 your former scheme benefits are protected.  The protection is designed to ensure that your current Scheme lump sum benefit cannot be less than the equivalent benefit that would have been payable had the former scheme rules as at 30 June 1994 continued to apply.  The Former Scheme Retirement Multiple is used in the calculation of redundancy (any age) and early retirement benefits on and from age 55.

​Service is calculated in years and complete months and an adjustment is made for any periods of leave without pay or part-time service.

The Former Scheme Accrued rates for each corresponding member contribution rate are detailed in the following table:

Former Scheme ​Leaving Service Benefit

The Former Scheme Leaving Service Benefit is for those members who joined the Scheme on or before 30 June 1996 and who cease employment before attaining age 55 for any reason other than for redundancy, death or permanent incapacity.

L​​ate Retirement Account

Your Late Retirement Account is equal to the benefit which would have been payable had you retired on your Normal Retirement Date together with interest from that date. Interest earnings allocated to your Late Retirement Account during the year are calculated using the Scheme's Defined Benefit Earning Rate which can be positive or negative.​

Member Contribution​​​ Account

Your Member Contribution Account is the sum of your Compulsory Member Contributions together with investment earnings (since 1 July 1990) calculated using the Defined Benefit Earning Rate.

Member Contribution Offs​​​et Account