SUPERANNUATION

Transition to Retirement

Transition to retirement provides more options for superannuation fund members making the transition from work to retirement. Where a person has reached their preservation age they can access their superannuation in the form of a non-commutable income stream without having to retire or leave their current employment.

A person could work part-time and use part of their superannuation to supplement their income. However, there is no requirement to reduce from full-time to part-time to be eligible to access a non-commutable income stream from their superannuation fund. All that an eligible superannuation fund member needs to do is ask their fund to commence paying them a pension.

These arrangements are generally available to all members of accumulation superannuation funds that will commence a non-commutable account based pension or term allocated pension for a person who has reached preservation age. Superannuation fund members should check with their superannuation fund to establish if their fund will commence a non-commutable income stream.

Transition to retirement pensions are available from the CSS in certain circumstances such as where a CSS member is able to cease membership of the CSS without ceasing employment. This option is available to ACT Government employees and those CSS members that are employed by agencies that no longer participate in the CSS.

Transition to retirement pensions cannot be paid by the PSSdb.

The PSSap does not provide transition to retirement pensions. However, the PSSap will allow members who have reached preservation age to roll over some or all their accumulated benefit s in the PSSap to another superannuation fund in order to commence a transition to retirement pension.