The much-awaited Transition to Retirement Bill has finally passed through the SA Parliament with a major improvement won by the PSA.

The Transition to Retirement process will enable members of the State Superannuation Schemes approaching retirement to access their Superannuation benefits before retirement. This means that members can work part-time or in a lower-level position and make up the loss in salary by drawing on their accrued superannuation equity. Superannuation benefits received through Transition arrangements can not be taken in the form of a lump sum but only as a retirement income stream. Naturally, drawing on your superannuation benefits prior to retirement will reduce post-retirement benefits.

The original Government proposal was to limit the total of salary and the retirement income stream to the salary received prior to entering into a Transition to Retirement arrangement. PSA argued against this as it would have meant that a benefit limit would apply to members that did not apply in the general community. An amendment to remove the limit for members of the Triple-S scheme was eventually accepted by Government following lobbying by the PSA working with the SA Government Superannuation Federation. Examples of the benefits that can be accessed by members are on the PSA web-site at: http://www.cpsu.asn.au/Transition.html

Note that the PSA does not provide individual financial planning for members. Members should consult a financial adviser, accountant or tax agent before making decisions in these matters as circumstances vary from member to member.

17 March 2008