You may be able to move your PSS super money to another super fund. To do this, you’ll need to contact the new super fund and ask them to start the transfer process. They’ll need some information from you, like your PSS membership number and your tax file number. Once they have this information, they’ll start the process of transferring your money. It can take some time for the transfer to complete, so be patient.
Portability
The Portability rules allow you to transfer your superannuation between funds when you change jobs. This means you can keep your superannuation in one place, even if you change jobs multiple times. This can help you to avoid paying multiple sets of fees and charges, and it can also make it easier to track your superannuation balance.
There are a few things you need to keep in mind when transferring your superannuation between funds:
- You can only transfer your superannuation between funds that are registered with the Australian Taxation Office (ATO).
- You may need to pay a transfer fee. This fee will vary depending on the fund you are transferring to.
- Your superannuation may be subject to preservation rules. This means that you may not be able to access all of your superannuation until you reach a certain age. The preservation age is currently 60.
Preservation
The preservation rules are designed to help you to save for your retirement. They prevent you from accessing your superannuation until you reach a certain age. The preservation age is currently 60. There are a few exceptions to the preservation rules, such as if you are permanently disabled or if you are using your superannuation to purchase a first home.
If you transfer your superannuation between funds, the preservation rules will still apply. This means that you will not be able to access your superannuation until you reach the preservation age, even if the fund you are transferring to has a lower preservation age.
Fund Transfer Fee Preservation Age AustralianSuper $50 60 Cbus $60 60 Hostplus $70 60 Tax Implications of Transferring PSS Super to Another Fund
Transferring your Pension and Superannuation Scheme (PSS) superannuation balance to another fund may have tax implications, depending on your circumstances. It’s important to be aware of these before initiating a transfer.
Tax-Free Transfers
- Transferring your PSS balance to another super fund within the same employer does not usually trigger any tax.
- Consolidating multiple super accounts into a single fund is also generally tax-free.
Taxable Transfers
Transfers involving certain types of superannuation interests may be subject to tax, including:
- Transferring a preserved benefit from a defined benefit fund to an accumulation fund (may be subject to the transfer balance cap, and excess amounts transferred may be subject to tax)
- Transferring a defined benefit interest to a non-taxable fund (transfer balance cap may apply, with excess amounts transferred being subject to tax)
- Transferring a component of a defined benefit income stream to an accumulation or other defined benefit fund (may be subject to tax)
- Transferring a death benefit to a beneficiary who is not a tax-dependent (may be subject to tax)
Tax Consequences
Type of Transfer Tax Consequences Transfer within the same employer No tax Consolidation of multiple accounts No tax Preserved benefit to accumulation fund Transfer balance cap may apply; excess amounts transferred may be subject to tax Defined benefit to non-taxable fund Transfer balance cap may apply; excess amounts transferred may be subject to tax Defined benefit income stream component May be subject to tax Death benefit to non-tax dependent May be subject to tax It’s important to note that these are general tax implications, and individual circumstances may vary. It’s advisable to consult with a qualified financial advisor or tax professional for specific advice before making any transfer decisions.
Rollover Options
If you are considering moving your PSS superannuation to another fund, there are a few things you should keep in mind.
- You can only roll over your superannuation if it is in an accumulation account. If your superannuation is in a defined benefit account, you will not be able to roll it over.
- You can roll over your superannuation to any Australian superannuation fund that accepts rollovers. However, you should compare the fees and investment options of different funds before making a decision.
- There may be tax implications if you roll over your superannuation. If you roll over your superannuation from an accumulation account to a defined benefit account, you may have to pay tax on the amount that is rolled over.
The following table summarizes the rollover options available to you:
From To Tax implications Accumulation account Accumulation account No tax implications Accumulation account Defined benefit account You may have to pay tax on the amount that is rolled over Defined benefit account Accumulation account Not possible Defined benefit account Defined benefit account Not possible Benefits of Fund Diversification
Diversifying your superannuation investments across multiple funds can provide several benefits, including:
- Reduced Risk: Spreading your investments across different funds helps mitigate the impact of market fluctuations, as the performance of individual funds can vary based on different factors.
- Potential for Higher Returns: Diversifying across funds can potentially enhance your overall returns by accessing different investment strategies and asset classes that have different risk and return profiles.
- Improved Risk-Return Profile: By combining funds with varying risk and return characteristics, you can create a diversified portfolio that aligns with your financial goals and risk tolerance.
- Reduced Fees: Some super funds charge fees based on the total value of your investment. By diversifying across multiple funds, you may be able to minimize overall fees if the funds you choose have lower expense ratios.
- Access to Specialized Funds: Diversifying allows you to include specialized funds in your portfolio, such as those focused on specific industries, asset classes, or sustainable investments, to align with your unique investment preferences.
It’s important to note that fund diversification is not a guarantee of higher returns or lower risk, but it can be a valuable strategy to manage investment risk and potentially enhance your overall financial outcomes.
Fund Type Risk Level Potential Returns Fees Growth Fund High High Generally higher Balanced Fund Medium Moderate Moderate Defensive Fund Low Low Generally lower This table provides a simplified example of different fund types and their associated characteristics. When considering fund diversification, it’s recommended to research and compare multiple funds to find a combination that meets your specific needs and financial objectives.
Thanks for sticking with me to the end! I hope this article has given you some clarity on the subject of transferring your Pss super to another fund. If you still have questions or need further assistance, don’t hesitate to reach out to a financial advisor or the relevant superannuation fund. And remember, I’ll be here if you ever need a refresher on this or any other financial topic. So, stay tuned for more informative and engaging content in the future. See you next time!