PSS Death and Invalidity benefits and ADIC

PSS provides Partial Invalidity and Invalidity benefits if you become seriously sick or injured, and pays Death benefits if you die.

Eligible PSS members receive these benefits automatically at no extra cost.

Who’s eligible?

• Contributing members

  You're eligible for Death and Invalidity benefits if you're a contributing member and under age 60.

  Your benefit is based on the lump sum you would have received if you had continued working to age 60 (for full benefits members).

• Preserved members

  If you're no longer contributing to PSS, you're still eligible for Death and Invalidity benefits. Your Invalidity benefit is based on the value of your PSS benefit at the time you claim. You can apply for an Invalidity benefit up to age 65. Once you reach age 65, your benefit becomes automatically payable under its normal condition of release.

• Deemed invalidity retirement

  You can also apply to be considered for deemed invalidity retirement if you believe you should have been retired on invalidity grounds when you left your PSS employer. For more information, see the Deemed invalidity retirement guidelines.

You’re assigned a benefit classification 

If you've re-joined PSS, you’ll need to complete a Confidential medical and personal statement (CMAPS) within 14 days. We may also ask you to undertake a medical assessment.

We use this information to assess how likely it is that you can work without excessive sick leave or PSS claims during the first 3 years of re-joining PSS. After the assessment, you'll be classified as either:

• a full benefits customer; or
• a limited benefits customer (LBM)*.
  Important: If you don’t complete and return this form within 14 days you will automatically be classified as a LBM. You’ll remain a LBM until your completed CMAPS form is returned and your medical status determined

*Limited benefits members (LBM): A limited benefits member is someone CSC has determined is not being in sufficiently sound health to perform all the duties of their role without taking excessive sick leave during the first 3 years of their current membership.

You may also be classified as a limited benefits member if:

• you didn’t complete a CMAPS form when you joined
• you didn’t undergo a required medical examination at the time your membership commenced.
• you didn't provide required information, or you provided false or misleading information as part of a medical questionnaire, medical examination or medical test

If CSC determines that you're a limited benefits member, your limited benefits status starts when CSC notifies you and ends 3 years after you became a member. After that, you'll automatically become entitled to full benefits.

Full vs limited benefits

If you’re a contributing member and your permanent invalidity claim is approved:

• Full benefits members receive a benefit that includes their prospective years of service to age 60.
• Limited benefits members receive a lump sum only benefit, calculated up to the date they stopped working.

Death benefit

• How much is payable?

  If you die, your dependants (usually your surviving spouse or eligible children) will receive a lump sum that’s calculated on the percentage of the pension you would’ve been paid if you retired on invalidity grounds.

• Who receives Death benefits?

  Benefits are payable to your eligible spouse and/or children if you die:

  • when you’re a contributing or a preserved member; or
  • after you’ve retired, if you were receiving a PSS pension.

  If you don’t have an eligible spouse and/or children when you die, your PSS benefit is usually paid to children who otherwise would be ineligible for benefits, or to your estate.

  If you die, and you are a:

  • Full benefits member: your eligible spouse can choose to take the benefit as a pension, a lump sum or a combination of both.
  • Limited benefits member: your dependants will receive a lump sum based on the benefit accrued up to the date you die. A pension isn’t available.

  For more information see Death benefits. For explanations and examples of how payments are calculated, download the Death and Invalidity benefits booklet.

Invalidity benefit

• Invalidity retirement benefits vs Partial invalidity

  Invalidity retirement benefits support you if your employer retires you on invalidity grounds and your CSC claim is approved.

  Generally, to be approved for Invalidity retirement you must be totally and permanently incapacitated, which means that a physical or mental condition makes it unlikely you can work again in an occupation you're reasonably qualified by education, training or experience to perform, or, in a role you could be retrained to do.

  A partial invalidity pension is a form of income maintenance. We pay this benefit if, through the claims process, we decide that your salary is permanently reduced because a medical condition means you’ve been downgraded or need to work fewer hours.

  We also pay it if you're retired on medical grounds and then return to work with a PSS participating employer for a salary that is lower than what you were paid when you first retired on medical grounds.

• How we pay benefits

  If your claim is approved and you’re a full benefits member, you can take your Invalidity benefit as a pension or as a combination of a pension and a lump sum. If you’re a limited benefits member, your benefit is paid as a lump sum.

  If you’re terminally ill, you can choose to take your benefit as a lump sum, but prospective service won’t be included in the calculation.

  You may also receive pre-assessment payments while we review your claim. These payments help provide income after your sick leave ends and before we make a decision.

• Faster access if you’re terminally ill

  If you’re terminally ill, we’ll prioritise your claim and process it as quickly as possible. For more information, see PSS terminally ill members.

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ADIC is optional insurance cover that can increase the amount payable if you suffer permanent invalidity or if you die.

It’s extra cover you can apply for on top of the Death and Invalidity cover you automatically receive when you joined or re-joined PSS.

It's offered at competitive rates and your employer pays half of the standard risk premium, making it a cost-effective way to boost your protection.

Top up with ADIC

ADIC can help fill the gap between your current Accrued Benefit Multiple (ABM) and the maximum amount payable from PSS. This may suit you, for example, if you joined or re-joined PSS later in your career and have only a short period of prospective service before you turn 60.

Taking out this extra cover is a bit like buying an additional ABM, but it only applies if you die or retire due to invalidity.

Who can apply?

If you're contributing to PSS and you're under 60, you can apply for ADIC. Casual employees, members with multiple PSS accounts and those who have transferred from CSS may also be eligible to apply for cover.

To discuss your situation and confirm your options, call us on 1300 000 377.

How to apply

Log in to CSC Navigator and use the LIFEapp insurance calculator to get a quote and apply.

It usually takes about 20 minutes. Before making any decisions, you should consider the PDS and the Death and Invalidity benefits booklet, and consider obtaining financial advice.

Applying for ADIC

• Have the following information ready before you start your application:

  • your height and weight
  • your medical history, including any illnesses, injuries and medications
  • details of any hazardous pursuits you take part in
  • your doctor's name and contact details
  • your occupation, average salary and Accrued Benefit Multiple (ABM). 

  You can find your ABM on your latest Annual Statement at csc.gov.au/login or call 1300 000 377.

• Work out the cover you need

  The simplest way to work out how much cover you may need is to consider your current and future financial obligations.

  Start by considering the Death and Invalidity benefits already payable from your PSS defined benefit scheme. Then think about whether you need extra insurance to help cover your day-to-day expenses, debt repayments and potential medical costs if things don’t go to plan.

  Log in to CSC Navigator and use the LIFEapp insurance calculator to get a quote.

  LIFEapp will show you the maximum level of cover you can apply for.

• Apply online or complete a form

  You can apply online or submit a form—a full insurance application process applies. The insurer will assess your application and may request a medical examination or medical reports. They'll let you know if they require anything further.

  Apply online: Log in to CSC Navigator and use the  LIFEapp insurance calculator

  Submit a form: Complete and return to us Apply for or change Additional Death and Invalidity Cover form.

  For further support call 1300 000 377.

Who pays for cover?

Your employer pays half of your standard risk premium, with the remaining cost automatically deducted from your pay each fortnight. The standard premium is based on your age and the amount of cover you have. If the insurer applies an additional premium based on your individual risk profile, that additional cost is paid by you.

• Employer contribution

  If the insurer assess you as:

  • A standard risk: if you're in good health and you don't engage in hazardous pursuits then your employer pays 50% of your standard ADIC premiums.
  • A non-standard risk: if your premium is higher due to medical or other risk loadings, your employer still pays 50% of the standard premium.

• Your contribution

  You'll pay:

  • the remaining 50% of the standard premiums; 
  • any additional premium loadings if you’re assessed as a non-standard risk; and
  • your share of the insurance fees and costs directly from your pay each fortnight.

  If you take unpaid leave, you'll need to pay the full premium amount for that period of leave.

Insurance payments and contribution caps

The portion of your ADIC premium that your employer pays counts towards your before-tax (concessional) contribution cap. The amount you pay counts towards your after-tax (non-concessional) contribution cap.

How much does ADIC cost?

ADIC premiums are based on your age and the amount of cover you're eligible for. You can find the premium rates in the Death and invalidity benefits. We’ll confirm your premium when your ADIC application is approved.   

Worked example

Here's an example showing how to work out the fortnightly insurance cover cost for a member aged 50.

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Broaden your financial security with lifePLUS choice

PSS members, who have a PSSap accumulation account can apply for lifePLUS choice Income Protection cover, and Death and TPD cover (which includes Terminal Illness cover).

This gives you the flexibility to tailor your insurance to fit your lifestyle and financial needs.

lifePLUS choice works with other PSS cover

Any benefits paid through lifePLUS choice cover are in addition to what you may receive from a PSS Death and Invalidity claim—whether or not you have ADIC.

Who can apply and how?

To apply for lifePLUS choice, you need to:

• have an accumulation account; and
• be under age 67 to apply for Income Protection cover and under 70 to apply for Death and TPD cover.

Opening an accumulation account

You can open an accumulation account with PSSap if you’ve been employed by an eligible employer for at least 12 continuous months and you’re either a:

• current contributing or preserved PSS member; or
• former PSS member who was contributing at any time on or after 7 March 2021.

When you join PSSap, your new account works alongside your PSS account and allows you to apply for lifePLUS choice. For more information:

• Visit PSSap personal accumulation;
• Head to lifePLUS choice; or
• Read the Insurance and your PSSap super booklet.

Before making any decisions you should read the PSSap PDS and Target Market Determination.

How to claim

Read more about How to make a claim.

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