Teacher defined benefit super schemes: state by state, with formulas

Defined benefit vs accumulation: the difference that matters

Most teachers who started after the 1990s are in an accumulation fund. Your employer pays 12% of salary into an account, and the balance goes up and down with investment returns. A defined benefit scheme works the other way round. The scheme rules set the benefit using a formula, usually your final or final average salary times a multiple that grows with each year of service and depends on how much you contribute.

Because the formula leans on salary at the end of your career, decisions in your last three to five years (dropping to part-time, a deferred salary year, taking leave without pay, a promotion or higher duties) can move a DB benefit far more than the same decision would move an accumulation balance. For how ordinary teacher super works, see teacher super explained.

Every state teacher DB scheme and when it closed

NSW: SSS, SASS and the SANCS basic benefit

NSW's DB schemes are run by State Super, the trading name of the SAS Trustee Corporation. Aware Super offers financial planning to State Super members, but it isn't the trustee or administrator. SSS (closed 1 July 1985) is essentially a pension scheme: you buy 'units of fortnightly pension' set by your salary, with normal retirement at 60 and early voluntary retirement from 55 for most members.

SASS (closed 18 December 1992) is a split scheme. You pay 1% to 9% of salary into a personal account, and each 1% you contribute for a year earns about one benefit point. Each point is worth 2.5% of your final average salary (about 2.12% after contributions tax for service since 1 July 1988). Most members can average up to 6 points a year and 180 in total. On top of both schemes sits SANCS, an employer-funded basic benefit of 3% of final average salary for each year of service since 1 April 1988 (about 2.55% after tax).

SASS contribution rate changes are due by 28 February and take effect from 1 April. Members usually get their retirement benefit on leaving employment from 58 (55 for some transferees), but preservation age still governs when preserved amounts can be paid. More detail for NSW is on NSW teacher super.

Victoria: Revised Scheme and New Scheme

Both schemes are run by ESSSuper and both covered the Teaching Service. The Revised Scheme is for staff who joined between 1975 and 1988. It calculates a benefit from recognised service, final average salary and age, and pays a lifetime pension once you reach minimum retirement age (usually 55) and resign or retire. Your fortnightly contribution is set by age and salary. Leave without pay, part-time service and recognised prior service all change the benefit.

The New Scheme is for staff who joined between 1 July 1988 and 31 December 1993. It's lump-sum based and uses service, final average salary, your contribution rate and age. You can contribute nothing, 3%, 5% or in limited cases 7% of after-tax salary, and you can change the rate up to three times a calendar year. Minimum retirement age is 55 for most members. ESSSuper publishes the multiples in its scheme handbooks and has an estimator; we haven't reproduced figures here. See Victorian teacher super.

Queensland: the QSuper Defined Benefit account

The QSuper Defined Benefit account closed on 12 November 2008, so it holds teachers who started up to about 18 years ago. The formula is simple: benefit = multiple x final salary. The standard member contribution is 5% of superable salary, with an employer contribution of 12.75%. You can drop to 2%, and rates above 5% are catch-up only. The account charges no fees and includes death, TPD, terminal illness and income protection cover.

WA: Gold State Super

Gold State Super (run by GESB, closed 29 December 1995) is guaranteed by the WA Government and isn't market-linked. GESB's formula is: Service Multiple = (completed months of service / 12) x 20% x (average contribution rate / 5), and Final Benefit = Service Multiple x Final Remuneration. Final Remuneration is the average of your salary at exit and at the two prior annual selection dates. The maximum average contribution rate is 5%.

Two rules catch people. You can access the benefit only on ceasing WA public sector work on or after 55, and you must take the whole benefit (cash, allocated pension or rollover); partial access isn't allowed. Leaving before 55 makes it a deferred benefit. And withdrawing from Gold State voluntarily can't be undone. See WA teacher super.

SA, Tasmania, the NT and Commonwealth schemes

• SA Pension Scheme (Super SA): a lifetime fortnightly pension based on salary, age, contributions and membership points, indexed twice a year to Adelaide CPI. An eligible surviving spouse gets two-thirds. You can commute part or all to a lump sum within 3 months of the pension starting. Generally payable from 55 on leaving the SA public sector.
• SA Lump Sum Scheme: an employer defined benefit plus a member account of 0% to 9% after-tax contributions. Usually fully accessible on retiring at or after 55. You can't salary sacrifice into it; you need a Triple S account. See SA teacher super.
• Tasmania (RBF): the RBF defined benefit scheme is closed. We couldn't confirm its closing date, formula or access age from an official source, so contact the Retirement Benefits Fund Board for your statement. See Tasmanian teacher super.
• NT NTGPASS: for staff who started between 1 October 1986 and 9 August 1999. You contribute 2% to 6% (changeable each 1 October). Employer benefit = 2.5% x benefit salary x benefit points x vesting factor. Nothing vests if you resign in the first 5 years, part vests at 5 to 10 years, and it's fully vested after that.
• NT NTSSS: an employer-financed lump sum of 3% of salary for each year of service since 1 October 1988, paid by the Territory when employment ends. (It's NTSSS, the Northern Territory Supplementary Superannuation Scheme.) See NT teacher super.
• CSS and PSS (Commonwealth): CSS closed 30 June 1990 and PSS closed 30 June 2005. Some long-serving ACT and NT staff may be in them. PSS uses final average salary x accrued benefit multiple. Don't confuse Commonwealth PSS with NSW's Police Superannuation Scheme, also called PSS. See ACT teacher super.

Rules that work differently if you're in a DB scheme

• Contribution caps use notional contributions. For the $32,500 concessional cap and Division 293 (income over $250,000), your fund works out a 'notional taxed contribution', which can be very different from 12% of salary. Ask for it before you salary sacrifice.
• Part-time and leave without pay cost more than you think. Part-time years earn smaller multiples or fewer points, and LWOP can reduce or stop accrual. Check before you go part-time or take a career break.
• Deferred salary schemes interact with super. NSW deems SSS and SASS members' superable salary to be full salary for all 5 years of its scheme. In salary-reduction schemes your super salary may drop. See the teacher deferred salary scheme guide.
• Some allowances aren't superable. In NSW, for example, the double-pay extended leave allowance isn't superable for SSS and SASS members.
• Leaving can be irreversible. Rolling out of Gold State, or resigning from NTGPASS before 5 years, can permanently reduce what you get.
• Untaxed schemes have their own caps. Gold State and Super SA schemes are untaxed, so tax is applied when benefits are paid or rolled over, subject to the untaxed plan cap.

What to ask your fund before a big decision

This page is general information. DB schemes have rules that change outcomes by tens of thousands of dollars, so your benefit statement and the fund are the authority. A licensed financial adviser who knows your scheme can help with the bigger calls. Next, read when teachers can retire and transition to retirement for teachers.