Retirement Incentive Scheme (RIS)
AvSuper is the corporate super fund of Airservices Australia.
Airservices Australia has informed us about their RIS scheme currently being offered to select employees. As such, we provide the following information to help any of our affected members make decisions about whether or not to retire under this package.
Details of the scheme
In summary, the Airservices Australia RIS is
- an early Retirement Incentive Scheme for Airservices operational staff aged 56+ at 1 July 2021
- treated as a redundancy for tax purposes
- to be paid in the 2021/2022 financial year
- capped at a maximum 75 weeks pay and is calculated as follows:
- 4 weeks for first 5 years completed service
- 3 weeks per subsequent completed year of service
AvSuper RIS webinars
AvSuper conducted three webinars to provide members with general information about the RIS and how that impacts your AvSuper membership. If you missed these webinars are want more information, please contact us.
AvSuper after RIS
If you accept the RIS package, you can continue your AvSuper membership. Your retirement savings can continue growing in a public offer accumulation account or start providing you with an income through an income stream – or a combination of both!
Public Offer membership of AvSuper includes:
- the same personalised service you are used to
- access to personalised advice
- death, injury and income protection insurance options
- member investment choice
Frequently asked questions
Following are some of the common questions members are asking us. If your question isn’t answered here or you need additional information and assistance, please contact our Member Advice Team via phone (1300 138 751), AvChat, or email.
What is the RIS?
Retirement Incentive Scheme for Airservices operational staff aged 56 + at 30 June 2021 that will be treated in line with a genuine redundancy for tax purposes. The RIS will occur in the 2021/2022 financial year and will be offered to operational employees.
The detail is outlined in Class Ruling 2021/43 although the benefits are in line with the relevant enterprise agreements. The offer is capped at a maximum of 75 weeks’ pay (equivalent to 24 years of continuous service) and is calculated by paying 4 weeks of salary for the first 5 years of completed service and 3 weeks for each subsequent completed year of service. In addition to the benefits in the EA, you will receive an additional one week’s salary for every year worked at Airservices (capped at five weeks).
Am I eligible for the RIS?
You are eligible to participate in the RIS if you meet all of the following criteria:
- as at the commencement date of the Scheme, you are a permanent employee covered by
− The ATC EA or the ALM EA at Airservices
− For the ARFF cohort – the ARFF EA, and
- are aged 56 years of age or older as at 30 June 2021, and
- will not have reached your pension age (as defined in subsection 23(1) of the Social Security Act 1991) as at the date of your retirement.
When do expressions of interest close?
You can submit a RIS expression of interest to Airservices up to at 3pm on 22nd July 2021.
Can I meet with someone face to face?
Some members have already met members of the team in recent weeks.
While the uncertainty around COVID provides some limitations and challenges, we can meet with you and your family via a number of safe platforms including the telephone, Zoom, Microsoft Teams or WebEx.
I have some friends/family with the same questions. Could we have a group meeting?
We are running some webinars which are an ideal opportunity to get some general information – see the registration form above.
As everyone’s individual circumstances are different, advice appointments are done on an individual basis. You are, however, welcome to bring others to your own advice appointment.
How do standard leave entitlements affect my Defined Benefit?
An AvSuper Defined Benefit member accrues a multiple of their Final Average Salary (FAS) for each day of membership.
The Final Average Salary is the average of the super salaries on your last three birthdays prior to ending employment with Airservices. This salary is always reported as a full-time equivalent salary, even if you are working part-time at the time of retirement. It is important to note that under Fund rules, your Final Average Salary can never reduce.
The payout of your leave entitlements under the RIS or a redundancy provision will not reduce your FAS (or) your benefit.
What happens to my Defined Benefit when I leave Airservices Australia employment?
How long until I can access my Defined Benefit after leaving Airservices Australia employment?
This generally takes around 30 days but may be a shorter or longer period depending on several factors:
- The time taken by Airservices Australia to provide AvSuper with an ‘Employer Certificate’ (EC). This certificate provides us with the information required to calculate your benefit.
- Whether you are over the preservation age and able to access your benefit. If you are not over the preservation age, your benefit will be transferred to a public offer account in your name. This transfer is effective the day after you cease employment at Airservices Australia. Your benefit is initially placed in a “cash equivalent” option to preserve your benefit.
- As a result of the crystallisation of your benefit, AvSuper is required by law to provide you with a significant event notice (SEN) no less than 30 days prior to the change being actioned. This 30-day notification will be provided to you once AvSuper has received the EC.
Can I add my redundancy payment into my super?
Yes, you can.
If you have a current accumulation account, the easiest way to contribute your payment is by BPAY, however, we recommend that you contact one of our Senior Member Advice Consultants to ensure you understand any tax implications or other aspects of this strategy.
Are there any restrictions on accessing my redundancy money if I put it into super?
Yes, there are. This will depend on your age and work situation. To discuss this, please contact one of our Senior Member Advice Consultants to ensure you understand any tax implications or other aspects of this strategy.
How is an accumulation or income stream account different to my defined benefit account?
For your Defined benefit account, the costs of investing, administration and Insurance are met by your employer. Thus you have had a prescribed level of insurance and your returns have not been dependent on market returns.
As a member of the public offer division or as an income stream member, you will be able to choose your investment option(s) according to your risk appetite as well as the level of insurance to suit your needs. The costs of administration, investment and insurance are paid from your account.
What investment options are available once I move out of Corporate AvSuper membership?
Once in an accumulation or income stream account, you can choose to invest your savings into one or more of our nine professionally managed investment options:
- Growth investment option
- Conservative Growth investment option
- Stable Growth investment option
- Balanced Growth investment option
- Diversified Index option
- High Growth investment option
- Cash investment option
- Australian Shares investment option
- International Shares investment option
If you don’t make an investment choice, your money will be invested in our default investment options according to your membership type. The default for accumulation members is the Growth (MySuper) option and for Income Stream members the default is a blend of the Balanced Growth and Cash options*.
What does an AvSuper income stream provide?
A flexible, tax effective income stream that has a simple and competitive fee structure that allows you to choose how much income you want to draw out (within legislated limits). You can choose to be paid fortnightly, monthly, or annually directly to your bank account with no withdrawal fees. You will have access to your balance 24 hours a day and can choose an investment choice of professionally managed investment options.
How do I start an AvSuper income stream?
You can start an AvSuper Income Stream whether or not you have an AvSuper account, and you can have an income stream alongside an AvSuper account.
And all you have to do to start an AvSuper Income Stream is fill in an Income Stream application form!
If you require personal advice specific to your situation, you may wish to make an appointment with one of our qualified member advice consultants on a fee for service basis.