CSS - Commonwealth Superannuation Scheme

How does the CSS work

The CSS is a hybrid super fund. This means that it’s a combination of two types of funds — a defined benefit fund and an accumulation fund.

In a defined benefit fund, member benefits are ‘defined’ by a formula. In the CSS, the defined benefit part is generally the CPI-indexed pension which is defined by a formula based on your final super salary, your length of contributory service and your age at exit.

Whereas in an accumulation fund, member benefits are determined by the value of contributions and investment returns. The accumulation part is your contributions plus Fund earnings (known as the ‘member component’) and your employer’s fortnightly contributions to your super (known as the ‘productivity component’).

With the CSS, planning for your retirement has never been easier.

    * How much do I have to contribute?
    * What is the productivity component?
    * What is the employer-financed component?
    * How can I calculate my retirement benefit?
    * Managing your money
    * Need to find out more?
    * Sound investment strategy

Visit: http://www.css.gov.au/