Public Sector Super Guide — CSS, PSS, and PSSap Explained

Australian Government employees have access to distinct superannuation schemes — some of which are among the most generous retirement arrangements in Australia. Understanding which scheme you are in, and how it works, is essential for retirement planning.

The Three Commonwealth Civilian Super Schemes

1. CSS — Commonwealth Superannuation Scheme

Status: Closed to new members since 1 July 1990

Type: Defined benefit

Who is in it: Commonwealth employees who joined government service before 1 July 1990 and have maintained continuous government employment

How it works:

• Members contribute 5% of salary
• Employer contributes an indexed defined benefit based on salary and service
• Benefits calculated using a complex formula: Average salary × benefit multiple × years of service
• Can be taken as a pension or lump sum
• Pension is indexed to movements in Average Weekly Ordinary Time Earnings (AWOTE) or CPI, whichever is greater

CSS pensions are among the most generous in the Australian super system — a legacy of older public service arrangements.

Tax: CSS includes an untaxed element — the employer-funded component has not been taxed in the fund, so withdrawals are taxed at a higher rate than normal super.

2. PSS — Public Sector Superannuation Scheme

Status: Closed to new members since 1 July 2005

Type: Defined benefit (hybrid)

Who is in it: Commonwealth employees who joined between 1 July 1990 and 30 June 2005

How it works:

• Member contributions: 0–10% of salary (member chooses)
• Employer “productivity” contributions: 3%
• Defined benefit component calculated using: Final average salary × years of membership × accrual percentage
• The accrual rate depends on service type and member contribution rate

Tax: Like CSS, PSS has an untaxed element — important for withdrawal tax planning.

3. PSSap — Public Sector Superannuation Accumulation Plan

Status: Open — current scheme for new APS employees from 1 July 2005

Type: Accumulation

Employer contribution rate: 15.4% of salary (above standard 11.5% SG)

See PSSap Review for full details.

The Untaxed Element and Retirement Tax

For CSS and PSS members, the defined benefit component contains an untaxed element. This means:

• Under 60: Taxed at marginal rate (minus 15% offset) on the untaxed component — not tax-free
• 60 and over: Taxed at 15% (not 0%) on the untaxed component

This is significantly different from normal super and requires retirement income planning with a specialist adviser.

State Government Super Schemes

Many Australian states also have their own public sector super schemes:

• GESB (WA) — see GESB Review
• State Super NSW (SSF, SASS, SANCS — various NSW schemes)
• Emergency Services Super (Victoria)
• QSuper / Sunsuper → Australian Retirement Trust (Queensland)

Each state scheme has its own rules, benefit structures, and tax treatment.

Frequently Asked Questions

What is the difference between CSS, PSS, and PSSap? All three are Commonwealth Government super schemes administered by CSC. CSS (Commonwealth Superannuation Scheme) opened in 1976, closed 1990 — a defined benefit scheme. PSS (Public Sector Superannuation) opened 1990, closed 2005 — also a defined benefit scheme. PSSap (Public Sector Superannuation Accumulation Plan) opened 2005 and is the current APS accumulation scheme. If you joined the APS before 1990, you may be in CSS; between 1990 and 2005, PSS; from 2005 onward, PSSap. Check your CSC member statement to confirm.

Can I switch from CSS or PSS to PSSap? Generally no — CSS and PSS members cannot simply switch to PSSap without losing their defined benefit entitlements. These defined benefit entitlements can be very valuable (particularly for long-serving members with high salaries) and should not be abandoned without very careful analysis. Some CSS members may have made an irreversible election. Specialist financial advice from an adviser experienced in Commonwealth defined benefit schemes is essential before any election or change.

Are CSS and PSS pensions indexed to inflation? Yes — CSS and PSS pensions (where taken as a pension rather than a lump sum) are indexed. Pensions are generally indexed to the Consumer Price Index (CPI) annually. This indexation provides inflation protection not available from most account-based pensions, and is one of the most valuable features of the defined benefit schemes. The indexation methodology is specified in the relevant legislation (Superannuation Act 1976 for CSS, Superannuation Act 1990 for PSS).

What is the untaxed element in government super and why does it matter? CSS and PSS accumulate contributions that were not taxed at 15% inside the fund (unlike standard super since 1 July 1988 for PSS and earlier reform dates for CSS). This creates an “untaxed element” at withdrawal. At age 60+, untaxed element is still taxed at 15% — unlike normal super which is tax-free. This can result in significant tax at retirement and makes rollout decisions complex. See Super Tax Components for more detail.

Do state government public servants use CSS/PSS/PSSap? No — CSS, PSS, and PSSap are Commonwealth Government schemes for federal (APS) employees. State government employees have their own separate state-based schemes: in WA, GESB; in NSW, State Super (SSS, SASS, PSS NSW); in Victoria, Emergency Services Superannuation (ESSS), State Superannuation Fund (SSF); in Queensland, QSuper (now merged into Australian Retirement Trust). Some of these state schemes have also migrated to accumulation-only models for new members while maintaining legacy defined benefit arrangements for existing members.

How do I find out my CSS or PSS defined benefit entitlement? CSC (Commonwealth Superannuation Corporation) is the administrator of CSS, PSS, and PSSap. You can access your account details through the CSC member portal (csc.gov.au) or by contacting CSC member services. For CSS, the Annual Member Statement will include your Funded Benefit and Unfunded Component. For PSS, it will include your Total Accumulated Benefit. Contact CSC for a retirement estimate if you are approaching retirement age.

For advice on CSS, PSS, or PSSap, speak with a licensed financial adviser with public sector super experience. Find an adviser via MoneySmart. For more: PSSap Review, Defined Benefit Funds, Super Tax Components.