Timothy Sumer

In this video, you'll see calculations and examples of aged retirement Vs 54/11 for CSS members. Meet Geoff, he's approaching age 55, has 33 years contributory membership with CSS, has Salary of $90,000 p.a. (Final Salary), CSS Member Component $250,000, CSS Productivity Component $110,000, Married to Mary also aged 54. Geoff is considering whether a 54/11 would work best for him. **Age Retirement Calculation** The Age Retirement indexed pension would be as follows: - Final Salary x Age Factor - $90,000 x 38.063% = $34,257 p.a. The Age Retirement maximum non-indexed pension is calculated as follows: - (Member + Productivity Components) x Age Factor - ($250,000 + $110,000) x 0.0925 = $33,300 p.a. As $33,300 is greater than 18.5% Geoff’s final salary the non-indexed pension will be capped at 18.5% of $90,000 or $16,650 p.a. Balance of his member and productivity of 50% or $180,000 will be paid in the form of a lump sum that will need to be rolled over to a...