Leaving the SA public sector: what to know about your super

Resigning from a job can feel like a big change. You might be moving to a similar role in the private sector, trying something completely different, or starting out on your own.

When you’re planning your next move, it’s easy for super to slip down the priority list. But taking a little time now to understand your options can make your next step a lot clearer.

Here’s what to consider before you move on.

So, where will your new super contributions go?

If you’ve accepted a new job outside the SA public sector, your employer will usually ask you to fill out a Superannuation Standard Choice Form. This is how you nominate where your super contributions should be paid.

Now, while you can’t nominate Triple S, you do have other options.

Stay with Super SA

As a Triple S member (with at least $1 in your account), you can choose to have contributions from your new employer paid into Super SA Select.
This can be a simple way to keep your super in one place and stay with a fund you’re already familiar with.
To do this, you’ll need to open a Super SA Select account and then nominate it with your new employer.

Choose another super fund

You can also nominate a super fund that suits your needs.
For some, that means choosing a fund with specific features. For others, it’s about keeping things simple by directing contributions into an existing account they already have.

What happens if you don’t choose?

If you don’t make a nomination, your new employer will check with the ATO to see if you already have a super fund they can use. This is known as a ‘stapled super fund’.
If you don’t have one, your employer will pay your super into their default fund.
Some people are comfortable taking that option, while others prefer to take a closer look first. Fees, investment options and insurance can vary between funds, so it can be worth understanding what’s on offer.

What about the super you already have in Triple S?

Alongside choosing where new contributions go, there’s another decision to think about: what to do with your existing Triple S balance.

Some members are comfortable leaving their balance in Triple S while building a new super balance in another fund. Others prefer to bring everything together.

It really comes down to your circumstances and future plans. Here are a few things worth keeping in mind:

• You can access it earlier – from age 55
  Most members who leave their SA public sector employment can access their Triple S super from age 55 (or 50 for SA Police officers)⁴. This is a distinct feature of Triple S which can be helpful if you’re planning to ease back from work sooner than most.
  
  If you roll your super into another fund, that feature doesn’t carry across, so you might not be able to access your super until a little later (usually age 60).

• Keeping your Triple S account can support other options
  If you want your new employer’s contributions paid into Super SA Select, you’ll need to keep your Triple S account open. Once it’s closed, you won’t be eligible to access Super SA Select unless you have SA public sector employment.

• It can still receive spouse contribution splits
  Your Triple S account can continue to receive contribution splits from a spouse. This is most relevant if your spouse is also an active Triple S member as Triple S contributions can’t be split to an external fund.
  

Some members instead choose to consolidate their super by rolling their Triple S balance into another fund (see ‘A word on tax’ below for important information). This can make super easier to manage and may reduce the fees and costs associated with holding multiple accounts.

Others take a more flexible approach, like rolling over part of their balance into another super product. For example, if you wanted to keep your Death and Total & Permanent Disablement (TPD) insurance with Super SA, you could do this by opening a Super SA Flexible Rollover Product. You’ll need to make the choice to transfer your cover within 60 days of leaving to keep your cover in place.

If you’re aged 60 or over, you may also be able to explore opening a Super SA Income Stream, which allows you to start accessing your super. How your Income Stream is set up depends on whether you’re still working.

A word on tax

One thing to be aware of is that Triple S isn’t structured the same way as most other super funds. It’s an untaxed scheme, which means tax on employer contributions and investment earnings is not deducted upfront. Instead, tax is applied when you withdraw your super or transfer it to another fund.

In practical terms, this means that if you move your super out of Triple S, tax will be applied at that point. This is something that would usually happen along the way (in a taxed fund), but staying in Triple S can mean you have more control over when that happens. It also means more of your money stays invested along the way because it hasn’t been reduced by tax upfront, which can make a difference to how your balance grows over time.

Leaving SA Government soon?

When it comes to deciding what steps to take, it’s okay to:

• Take some time to understand how your new employer pays super

• Explore your options

• Ask questions if anything isn’t clear.

If you’d like support, you can book a time with one of our consultants. They can walk you through your options and help you understand how different choices may affect your super, including tax.

Super is a long-term part of your financial future. Taking the time to feel informed and comfortable in your decision can make all the difference.

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