What’s the best way to exit SASS?

Don’t have regrets about how you exit SASS. This article outlines your options, and why understanding them matters.

You’ve been in the SASS for perhaps up to 30 years or more and now it’s time to leave the comfort of your scheme and make potentially the most important financial decision you will ever make (aside from purchasing your family home). So, once you’ve met the requirements to have your benefit paid out of the scheme, what are your options?

Option 1: You could take you final benefit as a lump sum [keep in mind that once you take your money out of super, it’s may not be able to put it back in].

Option 2: You could roll over all your SASS into a super fund [and stay within the super system and the benefits that come with that]

Option 3: You could do a combination of both [take a lump sum big enough to pay off your debts and keep the rest in super].

Option 4: Some SASS members were compulsorily transferred from a previous scheme may also have the option of a lifetime pension.

A StatePlus financial planner can help you navigate the decision to exit SASS, the paperwork and also help you make the important decision of whether to rollover all or part of your benefit and stay in the Superannuation system. They’ll you take you through your options and help you decide what’s the right decision for you.

Getting comfortable with the exit process

Once you’re clear and confident about what you’re going to do with your final benefit, you’re ready to go through the exit process. Do you know the steps involved?

This month we’ve provided you with a simple downloadable checklist to help you check things off as you go. But here are the 3 key steps:

Step 1: Notifying State Super – your employer must complete a form (E403) to notify State Super that you are ceasing employment or if you are over 65 having your benefit paid while you are still working.

Step 2: Applying for payment of your SASS benefit – the next step, is to complete an application to State Super (known as member form 412) requesting payment of your benefit or rollover in super fund account of your choice.

Step 3: Finalising your payment / rollover – benefit payments are generally processed for payment within five working days of receiving all the completed paperwork, including the information from your employer.

Things to consider before you exit SASS

Are you making an informed decision about exiting SASS? – what you need to consider? Here’s a list of important questions to ask yourself:

• Have I accrued the right amount of points?
• Will the timing of my exit maximise my employer finance benefit and basic benefit?
• Have I considered what to do with any long service leave?
• Are there any tax implications of my decision?
• Do I know how much I need to live on in retirement?
• Do I know how / where I’m going to invest my funds?
• Are my funds going to remain within the super system?
• Do I know how much income I need to generate from my investments to fund my retirement?
• Am I eligible for Centrelink entitlements and how long before I can access them?

For more help on making an informed decision about whether to take a lump sum or roll over your SASS, review your investment mix for super, or setting up income stream for retirement, you can attend a SASS seminar or make an appointment with a StatePlus planner.