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 on those contributions (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 you have a Member Contribution Offset Account it will be shown in your annual member benefit statement.  If you think you should have an Offset Account and it is not displayed in your benefit statement, please contact us so we can investigate this.

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 you.

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 is calculated in accordance with the Benefit Certificate issued by RBF's Actuary in compliance with the SGAA.  If you cease membership of the scheme and the amount of your defined benefit is less than your minimum requisite benefit, your defined benefit will be automatically increased to equal your minimum requisite benefit.

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 you were always full-time.

Pension conversion​​ factor

For Pre June 1994 members, your pension conversion factor is 12 if you or your surviving partner, choose to convert all or part of your Contributory Scheme lump sum to a Contributory Scheme Life Pension when:

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

In the above circumstances the pension conversion factors are used to calculate any surcharge debt reduction if you have a Surcharge Account only and you elect to take 100% of your benefit as a Contributory Scheme Schedule 1 Life Pension or a Regulation 102 Life Pension in which case the balance of your Surcharge Account will be deducted from your 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 your age and gender.

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

  RBF_Life Pension conversion factors   (292Kb).

​The pension conversion factors are set by the Trustee from time to time based on actuarial advice. Your pension conversion factor is determined by your age, gender and whether you wish to have your pension revert to your surviving partner on death (reversionary) or have no reversion (non-reversionary).

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Pre 94 Prospecti​​ve Incapacity Multiple

Your Pre 94 Prospective Incapacity Multiple is used in the calculation of your Total and Permanent Incapacity benefit (Option 2 - Schedule 1).

Your Pre 94 Prospective Incapacity Multiple is calculated as the Prospective Accrual Rate (see below) multiplied by your period of prospective service multiplied by your 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 the date of cessation of employment to:

If you are a Pre 1/4/87 Member:

• 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.

If you are a Post 31/3/87 Member,

• Age 55.

Pre 94 Prospective PPI Multiple

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

Your Pre 94 Prospective PPI Multiple is calculated as the Prospective Accrual Rate (see below) multiplied by your period of prospective service multiplied by your 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:

• If you are a Pre 1/4/87 Member, age 60, or
  
• If you are a Post 31/3/87 Member, age 55.

Prospective Death o​r Incapacity Benefit Multiple

Your Prospective Death or Incapacity Benefit Multiple is used in the calculation of your Death or Permanent Incapacity benefits.

Your Prospective Death or Incapacity Benefit Multiple is calculated as the Prospective Accrual Rate (see below) multiplied by your period of prospective service multiplied by your Part-time Proportion (if you are employed on a part-time basis at the time of your 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 your Redundancy benefits if you are aged between 60 and 65 years.

Your prospective services 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. You must be at least age 60 when you cease employment, if you are under age 60 at the date you ceased employment then prospective service is zero.

The Prospective Redundancy Multiple is calculated as your prospective service multiple by your full-time equivalent service divided by your 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 you are a Pre 1 July 1994 member who has not attained preservation age and you elect to preserve your Contributory Scheme redundancy benefit in the Contributory Scheme in order to retain access to the pension conversion factor of 12.  When you retire from the workforce on or after you have attained preservation age you may elect to use all or part of your 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 your redundancy, you must be less than your preservation age. The employer component of your Contributory Scheme redundancy benefit is transferred your 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 your former employer when you have attained your preservation age (or before preservation age if we determine that a benefit is payable on the grounds of permanent incapacity, terminal illness or death). On funding, the balance of your CPA 12 Account is transferred to your Investment 12 Account where it is subject to a once-off contributions tax deduction.

We will write to you and provide details of your benefit options including:

1. the use of all or part of your Investment 12 Account to purchase an RBF Life Pension calculated using the pension conversion factor of 12; or
2. continue to preserve your 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 your benefit to a complying fund of your choice; or 
4. a cash lump sum from the unrestricted non-preserved component of your benefit.

​You can only access the pension conversion factor of 12 once. You must elect to convert all or part of your Investment 12 Account to a fully funded life pension before rolling over or cashing part of your benefit otherwise you will lose access to the pension conversion factor of 12.

If you rollover or withdraw a cash lump sum from your Contributory Scheme CPA 12 or your Investment 12 Account before you are eligible to purchase an RBF Life Pension or before you elect to take part of your benefit as a RBF Life Pension you will lose access to the pension conversion factor of 12.

If this occurs your RBF Life Pension will be calculated using pension conversion factors determined by RBF on the advice of the actuary.  These pension conversion factors have regard to your age, gender and election as to whether you wish to purchase a reversionary or non-reversionary life pension.

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 for the rest of your life and in the case of a reversionary life pension the life of your surviving partner. The RBF Life Pension is indexed twice yearly in line with the Consumer Price Index (CPI).

You may purchase an RBF Life Pension using all or part of your:

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

You will need to satisfy one or more of the following conditions for the release of superannuation benefits:

1. you retire permanently from the workforce on or after you have attained your preservation age and before age 60; or
2. you cease employment on or after age 60; or
3. we are satisfied that you met the eligibility criteria for the payment of benefits on the grounds of total and permanent incapacity or terminal illness; or
   
4. you die (in which case your surviving partner may purchase an RBF Life Pension)

* If you have a Contributory Scheme CPA 12 and Investment 12 Account, or an Investment 12 Account only you must comply with the requirements relating to retaining access to the pension conversion factor of 12. You will have a once-off right to use all or part of your Investment 12 Account to purchase a reversionary RBF Life Pension using the pension conversion factor of 12. To exercise this right you 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 your benefit otherwise you will lose access to the pension conversion factor of 12.

** Your pension conversion factor is determined by your age, gender and your choice as to whether your life pension is to cease at the time of your death (non-reversionary) or a life pension that will continue to be paid to your surviving partner (reversionary) at the rate of two thirds of your pension as at the date of your death.

Regulation 102 Ex​cess Contributions Account

Where your current contribution rate(s) differs to the rates available under the previous scheme rules (i.e. 2.5%, 5%, 8% or 11%), the excess contributions will be refunded to you as part of your Regulation 102 benefit. This account represents the accumulation of excess contributions plus earnings calculated using the Defined Benefit Earning Rate.

Regulation 102 Pension Multiple

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

Your Regulation 102 Pension Multiple is calculated as your contributory service (in years and days) multiplied by the Accrual rate that corresponds to your contribution rate (during that period of contributory service) multiplied by your employment percentage (for the period). 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. 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 your contribution rate after 1 July 1994 is different to the available rates quoted above, your contribution rate will be reduced to the nearest contribution rate for purposes of calculating your Regulation 102 Pension Multiple (e.g. if your current contribution rate is 7%, your 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 you as part of your 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

Your benefits include an allowance for periods of retrospective service that you have previously elected to purchase as Contributory Service but for which you have deferred payment of the required cost. The cost of this retrospective service is included in your Member Contribution Offset Account and is deducted from your final benefit when you leave the Fund (unless you choose to pay this cost prior to ceasing employment or choose to revoke your election to purchase this retrospective service and have your benefit adjusted accordingly). The deferred cost accrues interest at a rate set by the Trustee from time to time based on actuarial advice.

SAF Account

Your SAF Account is the accumulated balance of the notional 3% employer contributions to your 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

Your Scheme Benefit Date will be the same date as your Benefit Accrual Date in all cases except where you have purchased periods of non-contributory service that commenced before your Benefit Accrual Date.  If you purchase a period of non-contributory service that commenced before your Benefit Accrual Date, your Scheme Benefit Date is 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

Your Surcharge Account (previously called your Higher Income Surcharge Debt Account) represents the accumulation of Surcharge Assessments received from the Australian Tax Office in respect to your membership of the Scheme.  The balance of your Surcharge Account is reduced by the amount of any offset you have made to reduce or discharge this account.

The balance of your 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 your Surcharge Account balance as at 30 June.

If you are planning to reduce all or part of your Surcharge Account by paying an offset contribution and you wish to maximise your interest savings you will need to ensure that any offset contribution is effective before 30 June.

If your Surcharge Account is in debt when you cease Scheme membership, the debt will be deducted from your 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 your 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