Read the Investment Options and Risk [PDF 430 KB], which forms part of the PSSap Product Disclosure Statement, for detailed investment information about your investment options.
PSSap members can invest in one or more of four investment options:
If you have not changed your option in the past, you will be in MySuper Balanced.
Ancillary Members can invest in the Balanced Option (but not MySuper Balanced), as well as the Cash, Income Focused and Aggressive options.
Which option or mix of options should you choose?
Take the time to understand your investment options, taking your personal objectives, financial situation and needs into account. For example, you should consider the:
- amount of time your money will be invested before you need it for retirement
- level of investment performance that you are expecting
- level of risk and fluctuation in the value of your investment that you can tolerate.
How your options are invested
As trustee of the PSSap, Commonwealth Superannuation Corporation (CSC) is responsible for all aspects of the PSSap including its investment strategy.
The assets of PSSap are pooled together with the assets of other schemes administered by the Commonwealth Superannuation Corporation. See investment disclosure on the CSC website for information about investment managers and top equity holdings.
How will negative returns affect my PSSap balance?
Negative returns are likely to reduce your balance in the short term. That reduction may last a day, a week or longer. The amount of reduction depends on factors such as the level of negative returns, how long the period of negative returns or volatility lasts, and if you decide to switch options in the meantime.
How is my super invested?
Your PSSap balance is invested by the trustee of PSSap, Commonwealth Superannuation Corporation (CSC). CSC jointly invests the super savings of PSSap members with the savings of the other Government public sector and military schemes it manages, totaling investments of over $30 billion on behalf of more than 500,000 current and former public sector and military personnel. That provides economies of scale benefits to members in each scheme including PSSap.
CSC then invests your savings in different asset classes based on your investment option selection and the associated target asset allocation of your chosen option/s.
Each of the four options available to you has a level of investment risk. That risk is measured and focused on the likelihood of achieving the targeted return objective for that option. For example, the level of investment risk for MySuper Balanced (the default option) is medium to high based on the Standard Risk Measure, meaning negative returns are expected in 3 to 4 years out of every 20 years. The return target for MySuper Balanced is CPI plus 3.5% per year over a 10 year period.
Should I switch investment options?
We cannot tell you to switch options or not here because this is general information only, and has not taken account of your personal objectives, financial situation or needs.
Keep in mind though, if one option delivers a negative return in one period of time (say, in one month or quarter) that doesn't mean it will perform the same the following period—or vice versa. Picking a 'winner' is not as simple as picking the option that has had the best return.
When markets are down, it can be the worst time to switch your investments, as doing so you can 'lock in' your losses. Meaning, you might miss out on gains when those asset values recover. Recoveries can happen quickly during times of high market volatility.
Please be aware that switching between options (in response to short-term market volatility) may actually compound the negative impact of that market volatility.
What is the right option for me?
Because instructing someone on the correct investment option for them involves the provision of personal financial advice, we cannot do that. Nor can we tell you if or when to switch options.
We can, however, help you in two ways:
First, we can encourage you to understand your options, taking your personal objectives, financial situation and needs into account. For example, you may like to consider the:
- amount of super you will need at retirement to last for a period of 20 years or more
- amount of time your super will be invested before you need it for retirement
- level of investment performance that you are expecting
- level of risk and fluctuation.
And second, we have CSC authorised* financial planners who offer personal financial advice to you.
- Visit financial advice to learn about the services available to you, including advice on your investment option choice, insurance and contributions.
* Our authorised financial planners are authorised to provide advice by Guideway Financial Services (ABN 46 156 498 538, AFSL 420367.). Guideway is a licensed financial services business providing CSC financial planners with support to provide members with specialist advice, education and strategies.
What action can I take now?
You may like to:
- read the PSSap Investment options and risk booklet to better understand the investment options available to you
- view the Product Dashboard for each investment option
- view PSSap investment performance
- get simple advice from a financial planner over the phone about your investment option selection
- get comprehensive financial advice to guide your retirement planning.
Can I get personal financial advice over the phone about my investment option selection?
Yes, PSSap members have access to financial advice through CSC authorised* financial planners. The financial advisory services offered include a financial planner giving personal advice to you over the phone.
This advice is limited to your investment option choice, insurance and contributions.
Visit financial advice to learn about the services available to you.
*Our authorised financial planners are authorised to provide advice by Guideway Financial Services (ABN 46 156 498 538, AFSL 420367.). Guideway is a licensed financial services business providing CSC financial planners with support to provide members with specialist advice, education and strategies.
Switching investment options
You can choose to invest in up to four investment options to suit your needs and objectives.
You can choose a different investment strategy for your future contributions and existing account balance, or you can elect the same strategy for both.
Until you make a choice, your super balance and contributions will be invested in MySuper Balanced, the default investment option for PSSap members. For Ancillary members, the default investment option is Balanced.
How do I switch?
When can I switch?
You can switch any day. If your switch request is received after 3pm on a business day or on a non-business day, it will be considered received the next business day.
Switch requests are processed within four business days of receipt.
Keep in mind, super is an investment for your retirement, so you may wish to select and stick with a strategy suited to your long-term needs and goals. Personal financial advice is available for your super situation including investments.
Which unit prices will be applied to my balance?
The relevant buy and sell unit prices for the day your switch takes effect.
For information on how we calculate unit prices, refer to the Investment options and risk booklet, which forms part of the PSSap Product Disclosure Statement.
How much does it cost to switch?
Your first switch is free if made within 30 days of joining PSSap. You then get two free investment switches each year (these can’t be rolled to future years).
Extra switches cost $20 each, deducted from your super balance.
Can I invest in more than one option?
Yes, you can invest your current balance and/or future contributions in up to four options. Ancillary Members cannot invest in the MySuper Balanced option; the Balanced option (with the same risk/return profile) is available to you instead.
Can I cancel my switch request?
No, you cannot cancel your switch request. But you can override your first request by submitting a second request the same day.
But if you submit your subsequent request after 3pm the same business day, your first request will be effective, before the second request takes effect.
Keep in mind that once you use your free switches each year, each further switch request (even if overridden) will cost $20, deduced from your super account.
Can investment switches be suspended?
Yes, Commonwealth Superannuation Corporation (the trustee of PSSap) reserves the right to suspend member switches if there is a major material event that impacts any one or more of the investment options. Switches would be suspended until the matter is resolved. In such an event, we’ll keep members informed through this website.
Should I get financial advice?
We recommend you consider personal advice before taking any actions. Find out about the personal financial advice service available to PSSap members.