Useful terms explained

​​Contribu​tory Scheme terms

​​​

Acc​rued Benefit Multiple

Your Accrued Benefit Multiple (as at the date of calculation) is calculated as your contributory service (in years and days) multiplied by the Accrual Rate *(see table below) that corresponds to your contribution rate (during that period of contributory service) multiplied by your employment percentage. 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 accrual rate varies for different member contribution rates and for service before and after 1 July 1993, as shown in the table below:

 

Contribution rate % (of salary)​​
​ Accrual Rate % for each
   year of service ​
        Post Tax Pre tax        Pre 1/7/93 Post 1/7/93
00.00000.000.00
2.52.9412
10.0010.00
55.882420.0020.00
67.058820.60
21.25
7
8.2353
21.7022.50
8
9.411822.9023.75
910.588224.2025.00
10
11.764725.4026.25
1112.941226.7027.50
1214.1176n/a28.50
1315.2941n/a29.50
14
16.4706n/a30.50
1517.6471n/a31.50

 

​Members aged 65 to 70 who have continued to be employed on a full-time or part-time basis by their public sector employer may elect not to pay fortnightly member contributions (either concessional or non-concessional contributions) to the Scheme.  These members continue to remain members of the Contributory Scheme until the earlier of the date of retirement or age 70. The following benefit accrual rates apply for those periods where the member has not paid contributions to the Scheme.

Contribution rate %  prior to cessation Accrual Rate % for each year of service
                2.5
                    7.5
          Above 2.5                     15

 


ATO earnings rate

The ATO earnings rate is used to calculate the balance of your Surcharge Account. If you do not have a Surcharge Account then the ATO earnings rate is not used in the calculation of your benefit.


AWOTE

AWOTE is the Average Weekly Ordinary Time Earnings as calculated by the Australian Bureau of Statistics.


Basic Member Account

Your Basic Member Account represents the accumulation of contributions you would have made if you had always contributed at the basic rate of 5% (or 2.5% if applicable), less death and incapacity premiums, plus earnings calculated using the Defined Benefit Earning Rate.

Benefit Accrual Date

The Benefit Accrual Date is the date you first joined the Contributory Scheme.

Contributor​y Scheme CPA

The Contributory Scheme CPA represents the unfunded employer component of your Contributory Scheme resignation and redundancy benefit, assuming you ceased membership of the Contributory Scheme as at the date of this statement. The unfunded employer component is calculated by reference to the employer share of your basic Contributory Scheme benefit as at 1 July each year.  Your basic Contributory Scheme benefit is equal to the benefit you would have accrued had you always contributed to the Scheme at the basic contribution rate of 5% (or 2.5% for Pre 94 members) of salary. The Contributory Scheme CPA is funded by your former employer when you reach preservation age or you satisfy a condition for the release of preserved superannuation benefits (whichever occurs first).

On funding, we will write to you and provide payment instructions with the options to take all or part of your benefit as a RBF Life Pension, a rollover superannuation benefit to your nominated complying superannuation fund or a cash lump sum from the unrestricted non-preserved component of your benefit. Any amount not taken as a RBF Life Pension or cash lump sum must be rolled over to a complying superannuation fund in your name.

The interest rate applied to a Contributory Scheme CPA is the greater of bi-annual movements in AWOTE or CPI as at 1 March and 1 September each year.


Contributory Sche​me CPA 12

The Contributory Scheme CPA12 represents the unfunded employer component of your redundancy benefit assuming you elected to preserve your redundancy benefit within the scheme.  You have done this to retain the right to purchase a RBF Life Pension calculated by reference to the pension conversion factor of 12 (rather than a higher actuarial pension conversion factor) when you retire from the workforce on or after you have attained your preservation age. The balance of your Contributory Scheme CPA 12 cannot be rolled over or transferred to another account until funded by your former employer when you reach preservation age (or before preservation age if RBF is satisfied that you met the eligibility criteria for the payment of benefits on the grounds of total and permanent incapacity, terminal illness or death). The Contributory Scheme CPA 12 is indexed twice per year at the greater of movements in AWOTE or CPI as at 1 March and 1 September of the year.

When your former employer funds your Contributory Scheme CPA 12 the balance will be transferred to your Investment 12 account in the Contributory Scheme where it will be subject to a once-off contributions tax deduction.  We will write to you and provide details of your benefit options. You may:

  1. use all or part of your Investment 12 Account to purchase a 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 until a later date. Your Investment 12 Account accrues interest at the Defined Benefit Earning Rate; or
  3. rollover all or part of your benefit to a complying fund of your choice (see important information below); or
  4. a cash lump sum from the unrestricted non-preserved component of your benefit (see important information below).

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.

​Important information: 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 a 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.


Contributory Sc​​heme Life Pension

The Contributory Scheme Life Pension is a fortnightly pension paid for the rest of your life. The Contributory Scheme Life Pension is indexed twice yearly in line with movements in the Consumer Price Index (CPI). You may be entitled to choose between a pension that ceases at the time of your death (non-reversionary) and a 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.

The employer share of a Contributory Scheme Life Pension is funded by last minute employer contributions by your former employer each fortnight for the duration of your pension.  These contributions are not subject to 15% contributions tax and are classified as untaxed.  The untaxed component of your Contributory Scheme Life Pension is taxable at your marginal tax rate. Your PAYG tax may be reduced by a 10% tax offset once you reach age 60 where all or part of the untaxed component of your Contributory Scheme Life Pension is less than the Commonwealth's defined benefit income cap.


Contribut​​ory service

Your contributory service is a period or periods of service in respect of which you paid contributions to the Contributory Scheme at or above the minimum required rate and includes any periods of purchased non-contributory service.

If you are or you have previously contributed to the Scheme as a part-time employee, your contributory service for each period of part-time service is calculated as full-time equivalent contributory service by multiplying your contributory service for the period of your part-time employment by your employment percentage for that period.  The calculation is repeated for each change in employment percentage where your employment percentage is less than 100%.  Your total full-time equivalent service is the addition of these calculations.  Your full-time equivalent service is used to calculate your Accrued Benefit Multiple Factor.  If you are a part-time employee your contributions are based on actual part-time earnings however the full-time equivalent salary will be used for Final Average Salary purposes.

For those members on leave without pay for greater than 20 days, service during this period does not count towards benefits (other than those members on sick leave without pay or parental leave without pay who elect to contribute).

For those members who choose to participate in a SSALS agreement with their employer, this is the same as choosing to work part time for any given length of time for RBF purposes, therefore your employment percentage will reduce for the length of your SSALS plan. In order to correctly reflect your employment status for the purposes of calculating benefits with the Contributory Scheme, it is necessary to convert your employment status to the appropriate part-time percentage of a full-time employee over the duration of the total SSALS period.  This will reduce your benefit as your contributory service will be reduced by the full-time equivalent service that applied to your SSALS plan.  Your Accrued Benefit Multiple will be less than what it would have been had you not participated in the SSALS agreement.  The loss in benefit accrual is permanent unless you increase your contribution rate to recover the lost benefit accrual. The maximum contribution rate is 15% of your after tax salary or 17.6471% of your pre-tax salary.


C​​​PI

CPI is the Consumer Price Index.


Fund Portion of Offs​​et Account

This account represents the portion of the total amount owing by a deferred buy back member that is to remain in the Fund (i.e. the total debt owing less the amount that will be applied to the members account), plus interest at the rate determined by the Fund Actuary.


Early Retiremen​​t Penalty Factor

Your Early Retirement Penalty Factor is a discount factor used in calculating your Retirement and Redundancy Schedule 1 Contributory Scheme Life Pension benefits.

The Early Retirement Penalty Factor will not apply to your benefits in the following circumstances:

  • you are aged 60 or more, or
  • you are a Police Officer, or
  • you are a female who commenced employment as a permanent fulltime employee prior to 1/7/82 (and have been continuously employed since that time), or
  • for Schedule 1 benefit purposes, you have an Accrued Benefit Multiple greater than or equal to 8, or
  • for Regulation 102 benefit purposes, you have a Regulation 102 Pension Multiple greater than or equal to 0.66666, or
  • you retire from employment with your employer after RBF has determined that you have satisfied the eligibility criteria for the payment of a Permanent Incapacity or a Partial and Permanent Incapacity benefit.

In all other cases the Early Retirement Penalty Factor will be applied to your Schedule 1 and Regulation 102 Retirement and Redundancy Contributory Scheme Life Pension benefits. The Early Retirement Penalty Factor is calculated at the rate of 1% for every 3 months (or part of 3 months), from the date immediately following your retirement or redundancy to age 60. If you have a preservation age of 57 and you retired on your 58th birthday and your Accrued Benefit Multiple was 7, your Early Retirement Penalty Factor would be 8%.  The early retirement penalty would reduce your gross annual pension to 92% of the life pension that would have been payable if the retirement penalty did not apply.


Family Law Debt ​​​Account

Your Family Law Debt Account represents the accumulation of your Family Law split base amount together with earnings at the legislated rate of Average Weekly Ordinary Time Earnings (AWOTE) plus 2.5%. This amount (or portion thereof) will become payable to your former spouse when an eligible splittable payment is triggered.

An eligible splittable payment will be triggered when, upon meeting a condition of release (such as ceasing employment), you elect to withdraw some or all of your benefit from RBF by way of cash payment, rollover to an external fund or payment as a Contributory Scheme Life Pension. Where an eligible splittable payment is triggered, your Family Law Debt Account will be applied against the first splittable payment. The priority order for identifying the first splittable payment when multiple disbursements are elected is:

  1. Cash lump sum
  2. Rollover to an external fund
  3. Contributory Scheme Life Pension

Where the amount of your Family Law Debt Account is greater than the first splittable payment, the remaining debt amount will be converted to a percentage of your remaining benefit. Your former spouse will then be entitled to this percentage of all future payments you take from this benefit. If you wish to clear this debt completely and avoid ongoing payments to your former spouse, you will need to ensure that the first splittable payment you elect to take is equal to or greater than the amount of your Family Law Debt Account. Note that once you have submitted valid payment instructions you are unable to revoke or amend them so please consider your options carefully and seek appropriate financial advice where necessary before requesting payment.

 

Family L​aw split

Under Family Law splitting arrangements, you will be required to pay a percentage of any splittable payment to your former spouse. An eligible splittable payment will be triggered when you satisfy a condition of release (for example you cease employment) and you withdraw all or part of your benefit as a cash lump sum payment, a rollover payment of all or part of your benefit to fund of your choice, a Contributory Scheme Life Pension, an internal transfer or an RBF Life Pension.  Upon triggering an eligible splittable payment your benefit payment will be reduced accordingly.

 

Final Averag​​e Salary (1)

Your Final Average Salary (1) is the average full-time equivalent annual salary received during the 12 months immediately preceding the date of calculation. Please note that for Regulation 102 benefits (Pre 94 members only) the Final Average Salary (1) used in the calculation will not include any overtime payments.


Final Ave​​​rage Salary (3)

Your Final Average Salary (3) is the average full-time equivalent annual salary received during the 3 years immediately preceding the date of calculation.


Full Benefits​ Member

You are a Full Benefits Member if you have passed the medical examination for full benefits status or have 10 or more years of contributory service (excluding purchased service and periods of sick leave without pay).

Limited Ben​​efits Member

You are a Limited Benefits Member if you have not undergone or have not passed the medical examination for full benefits status and you have less than 10 years of contributory service (excluding purchased service and periods of sick leave without pay).


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


The lump sum conversion factor is used to determine whether your SAF Account is payable in cases where you elect to take all of part of your benefit as a Schedule 1 Contributory Scheme Life Pension. The lump sum conversion factors are used in calculating the lump sum Regulation 102 Retirement lump sum benefit where the Regulation 102 life pension conversion percentage is greater than or equal to 50% and the pension commutation percentage (percentage of the pension to be commuted to a lump sum) must not exceed 50%.

The applicable conversion factor is determined based on your age at retirement as follows:

Age Factor Age Factor
5511.0
 639.4
5610.8 649.2
5710.6 659.0
5810.4 668.8
5910.2 678.6
6010.0 688.4
619.8 698.2
629.6 708.0

 


Member Contributio​​​n Account

Your Member Contribution Account is the accumulation of your personal (post tax) and salary sacrifice contributions (pre tax), less death and incapacity premiums and 15% contributions tax on your salary sacrifice contributions, plus earnings calculated using the Defined Benefit Earning Rate.


Member Contr​​ibution Offset Account

Your Member Contribution Offset Account represents the accumulation of contributions and any other amounts owing to or by the Fund.

A negative balance in this account indicates that you may owe contributions to the Fund. Outstanding contributions will not accrue interest until 90 days after the date we have formally notified you in writing of any debt.

A positive balance indicates that you may have paid excess contributions. Where earnings have accrued they are calculated using the rate determined by the Fund Actuary.

Your Member Contribution Offset Account debt must be deducted from your unrestricted non-preserved component of your residual after tax cash lump sum.  Your gross cash lump sum must include an allowance for the payment of lump sum tax to ensure that the resulting after tax cash lump sum is equal to or greater than the balance of debt in your Member Contribution Offset Account debt.

You must elect to take your benefit as a combination of Contributory Scheme Life Pension and lump sum where you have a debt arising from your Member Contribution Offset Account and / or you have a Surcharge Account.  Your lump sum must be enough to pay both debts as they cannot be paid from your Contributory Scheme Life Pension.

The amount of your gross lump sum will vary according to the amount and source of the debt account.

  • Your surcharge account debt is deducted from your gross residual lump sum. This means any debt can simply be deducted from your gross residual lump sum.
  • Your Member Contribution Offset Account debt must be recovered from the unrestricted non-preserved component of your residual after tax cash lump sum. Your gross cash lump sum amount must include an allowance for the the payment of lump sum tax to ensure that the resulting after tax lump sum must be equal to or greater than the debt in your Member Contribution Offset Account. 
  • The lump sum tax that is payable on the gross residual lump sum will vary according to your age.

If your residual after tax lump sum is insufficient, the amount of your benefit to be taken as a life pension is reduced and the residual lump sum is correspondingly increased to enable recovery of the outstanding debt.

If the unrestricted non-preserved component of your gross residual cash lump sum is less than the balance of your Member Contribution Offset Account you may reduce the amount of your debt by:

  • Paying a non-concessional contribution; and / or
  • Arranging for the payment of a rollover superannuation benefit to the Contributory Scheme in which case all or part of your benefit in another fund is transferred to the Contributory Scheme to clear all or part of the balance of your Member Contribution Offset Account.

If the balance of your Member Contribution Offset Account cannot be recovered from your after tax cash lump sum, your benefit will be subject to additional review. This review will investigate your contributory service, contribution rates and employment history, final average salary and accrued benefit multiples.  A potential outcome of this review is a reduction in the amount of your Member Contribution Offset Account which must necessitate a corresponding reduction in your accrued benefit multiple.


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. This is currently equivalent to employer contributions of 9.5% of Ordinary Time Earnings.  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).

​

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:

Contribution Rate %

Factor

Prospective Accrual Rate %

Factor

2.5

10

5.0 or more

20​

 

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:

Contribution Rate %

Factor

Prospective Accrual Rate %

Factor

2.5

10

5.0 or more

20​

 

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:

Full Benefits Members ​

Contribution Rate %

Factor

Prospective Accrual Rate %

Factor

2.5

10

5.0 or more

20

Limited Benefits Members ​

Contribution Rate %

Factor

Prospective Accrual Rate %

Factor

n/a9.5 (Current Superannuation Guarantee rate)

 

 

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:

Full Benefits Members ​

Contribution Rate %

Factor

Prospective Accrual Rate %

Factor

2.5

10

5.0 or more

20​


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. use 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 (see Important Information below); or 
  4. a cash lump sum from the unrestricted non-preserved component of your benefit (see Important Information below).

​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.

Important Information: 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 attain age 65; or
  5. 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:

Contribution Rate %

Factor

Accrual Rate %

Factor

2.5

0.83333

5

1.66666
81.90476
112.22222


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:

 

​Contribution rate % of salary​
​
​Accrual Rate % each year of service   
​
​Post tax (non-concessional contributions) 
 ​Pre tax salary sacrifice (concessional contributions)  
​

4.7% (prior to 30 June 2006 only)

​n/a
​17.375%
​5%
5.8824%​​17.75%
​6%
​7.0588%
​19.00%
​7%
​8.2353%
​20.25%
​8%
​9.4118%
​21.50%
​9%
​10.5882%
​22.75%
​10%
​11.7647%
​24.00%
​11%
​12.9412%
​25.25%

​ 

 

Accrued Re​​​tirement Multiple

Your Accrued Retirement Multiple is calculated as your Accrual Rate times your membership in years and complete months. Part-time 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.


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 55th 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:

 

​Age
 ​Factor
 ​Age
 ​Factor
​35 or under
​0.750
​43
​0.871
​36
​0.758
​44
​0.888
​37
​0.773
​45
​0.906
​38
​0.788
​46
​0.924
​39
​0.804
​47
​0.942
​40
​0.820
​48
​0.961
​41
​0.837
​49
​0.980
​42
​0.853
​50 or over
​1.000

 

 

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:

​Member contribution rate
 ​Percentage for each year of service
​4.7%
13.33%​
​5%
14.75%​
​6%
16.00%​
​7%
17.25%​
​8%
18.50%​
​9%
19.75%​
​10%
21.00%​
​11%
22.25%​

 


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.


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

Your Member Contribution Offset Account represents the accumulation of contributions and any other amounts owing to or by the Fund.

A negative balance in this account indicates that you may owe contributions to the Fund.  Outstanding contributions will not accrue interest until 90 days after the date we have formally notified you in writing of any debt.

A positive balance indicates that you may have paid excess contributions. Where earnings have accrued they are calculated using the rate determined by the Fund Actuary.

If your Member Contribution Offset Account is negative (in debt) when you cease membership of the Scheme it must be recovered and your debt paid.  We will attempt to recover all of your debt by paying a cash lump sum from your unrestricted non-preserved benefit (if any).  The required gross cash lump sum will include an allowance for the payment of lump sum tax (if any). The after tax cash lump sum is then paid to the Fund to clear your Member Contribution Offset Account debt. 

If your Member Contribution Offset Account debt cannot be discharged by cashing all of your unrestricted non-preserved benefit you may reduce the amount of your outstanding debt by:

a) Paying a non-concessional contribution; and / or

b) Arranging for the payment of a rollover superannuation benefit to the Scheme in which case all or part of your benefit in another fund is transferred to the Scheme to clear all or part of the balance of your Member Contribution Offset Account.

If after considering options (a) and (b) above your Member Contribution Offset Account is still in debt, your benefit will be subject to additional review. This review will investigate your contributory service, contribution rates and employment history, final average salary and accrued benefit multiples.  A potential outcome of this review is a reduction in the amount of your Member Contribution Offset Account which must necessitate a corresponding reduction in your accrued benefit multiple.

 

Normal Reti​​rement Date

Your Normal Retirement Date is the date of your 65th birthday.


Productivity ​​​Account

Your Productivity Account is equal to 3% of your salary for the period 1 July 1994 to 30 June 1996, less contributions tax, plus investment earnings calculated using the Defined Benefit Earning Rate.


Prospective Final Ave​rage Salary

Your Prospective Final Average Salary is equal to your Final Average Salary at age 55 assuming your salary remains unchanged between date of death/calculation and age 55.


State Service Accumulate​d Leave Scheme (SSALS)

State Service Accumulated Leave Scheme (SSALS) is an arrangement between you and your employer, where you work full-time over an agreed period but you are paid a proportion of your normal salary. Your unpaid hours are banked and taken as accumulated leave, which is paid to you at the same proportional salary.

For RBF purposes, when you enter into an SSALS agreement with your employer, you are not on leave without pay and you are treated as a part-time employee. You will be treated as a part-time employee for the duration of your SSALS. The rate of growth in your accrued retirement multiple is adjusted to reflect your SSALS part-time percentage as is your salary. Your Accrued Retirement Multiple will be less than what it would have been had you not participated in the SSALS agreement.  The loss in benefit accrual is permanent unless you increase your contribution rate to recover the lost benefit accrual. The maximum contribution rate is 11% of your after tax salary or 12.9412% of your pre-tax salary.


Surcharge A​ccount

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 Scheme 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 your outstanding surcharge debt are detailed in your Annual Member Benefit statement.​


State Fire Commission Superannuation Scheme terms


Accrued Retirement Multiple

This multiple is the sum of:

  • 15% for each year of membership up to 30 June 1990
  • 20% for each year of membership between 1 July 1990 and 30 June 2005
  • 16% for each year of membership from 1 July 2005
Membership is calculated in years and complete months. Periods of leave without pay may be excluded.


Contri​bution rate

While you are employed by the State Fire Commission you are required to contribute to the Scheme at the rate of 5% of salary if paying non-concessional (post-tax) contributions or 5.8824% of salary if paying concessional (pre-tax) salary sacrifice contributions until the earlier of your Normal Retirement Date or the date you cease employment.  


Current Ann​​​ual Salary

Your Current Annual Salary is your gross annual wage or salary, including payments and allowances but not including allowances for rent and overtime work as advised by your employer as at the date of benefit calculation. 


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. 


Late Retire​ment

Upon reaching your Normal Retirement Date, if you are still employed by the State Fire Commission and wish to remain in the Scheme, your benefit will be calculated at age 65 and will continue to accrue with earnings calculated using the Defined Benefit Earning Rate. From your Normal Retirement Date you are not required to contribute at 5% of your salary to the Scheme.


Member​​ Basic (1) Contribution Account

Your Member Basic (1) Contribution Account is the accumulation of your Compulsory Member Contributions without earnings.
​

Member Basic ​​(2) Contribution Account

Your Member Basic (2) Contribution Account is the accumulation of your Compulsory Member Contributions together with earnings calculated using the Defined Benefit Earning Rate.

​

Member Contribu​tion Offset Account

Your Member Contribution Offset Account represents the accumulation of contributions and any other amounts owing to or by the Fund.

A negative balance in this account indicates that you may owe contributions to the Fund. Outstanding contributions will not accrue interest until 90 days after the date we have formally notified you in writing of any debt.

A positive balance indicates that you may have paid excess contributions. Where earnings have accrued they are calculated using the rate determined by the Fund Actuary.

If your Member Contribution Offset Account is negative (in debt) when you cease membership of the Scheme it must be recovered and the debt paid.  We will attempt to recover all of your debt by paying a cash lump sum from your unrestricted non-preserved benefit (if any).  The required gross cash lump sum will include an allowance for the payment of lump sum tax (if any). The after tax cash lump sum is then paid to the Fund to clear your Member Contribution Offset Account debt. 

If your Member Contribution Offset Account debt cannot be discharged by cashing all of your unrestricted non-preserved benefit you may reduce the amount of your outstanding debt by:

a) Paying a non-concessional contribution; and / or

b) Arranging for the payment of a rollover superannuation benefit to the Scheme in which case all or part of your benefit in another fund is transferred to the Scheme to clear all or part of the balance of your Member Contribution Offset Account.

If after considering options (a) and (b) above your Member Contribution Offset Account is still in debt, your benefit will be subject to additional review. This review will investigate your contributory service, contribution rates and employment history, final average salary and accrued benefit multiples.  A potential outcome of this review is a reduction in the amount of your Member Contribution Offset Account which must necessitate a corresponding reduction in your accrued benefit multiple.


Minimum Requisite Benefit Ac​​count

Your Minimum Requisite Benefit Account represents the accumulation of Notional Superannuation Guarantee (9.5%) and Compulsory Member Contributions plus earnings calculated using the Defined Benefit Earning Rate and allowing for the effect of administrative charges, insurance costs and tax. 


Normal Retirem​ent Date

Your Normal Retirement Date is the date of your 65th birthday.


Productivity (3%) Co​ntribution

The Tasmania Fire Service is required to contribute a 3% productivity contribution for you under the Tasmania Fire Fighting Industry Employees Award. These contributions are credited to your complying accumulation superannuation fund of your choice.


Surcharge Accoun​​t

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 Scheme 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 your outstanding surcharge debt are detailed in your Annual Member Benefit statement.


Vesting Fac​tor

Vesting Factor is 10% per year of service (subject to a maximum of 100%) pro-rated for complete months.​


​

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