The Treasury

NSW Industrial Relations Circular

TC15-12 Early Retirement Benefits


The purpose of this Circular is to clarify the non-mandatory nature of the superannuation option for State Superannuation Scheme (SSS) members aged 50 and over who are offered voluntary redundancy. The relevant legislation came into effect on 1 July 1999.

Function and Subject

Industrial Relations (1)
Conditions of Employment

Detailed Outline

Under the option SSS members between ages 50 and 55 taking voluntary redundancy may, with their employer's agreement, defer the superannuation retrenchment benefit and elect to receive an early retirement pension at age 55. The option may assist the voluntary redundancy programs of some departments and agencies. However, they are under no obligation to implement it, and should be aware that if they agree to this arrangement, they will be required to continue making contributions for the retrenched employee until he/she attains age 55.

The contributions will be based on the same salary as applied immediately before the employee's retrenchment.

As employer costs in SSS can vary markedly for each member, departments and agencies are advised to carefully examine the financial merits of offering the early retirement option to retrenched employees, to determine whether they will achieve overall savings as a result of providing access to this benefit. Further details regarding superannuation costs are available from the relevant contact officers at State Super.

Employees should be informed at the time redundancy offers are made whether the early retirement option will be available to them. If so, employees will need to know that they will be required to pay their outstanding contributions to age 55 in a lump sum.



Who needs to know and/or comply with this?

Executive agencies related to Departments
Separate agencies
Statutory Authorities/Bodies

AR Details

Date Issued
Jun 26, 2015
Review Date
Jun 26, 2020
Replaced By


(02) 9228 5987
Publishing Entity
The Treasury
Issuing Entity
The Treasury