Public Sector super funds and the PSS

What are public sector super funds?

Public Sector super funds come with certain features that benefit employees of federal and state government departments. These funds generally have lower fees and tailored insurances, with profits going back to their members rather than shareholders.

In addition, some government employers contribute more than the compulsory superannuation guarantee towards super for employees in the public sector fund, which is a major benefit. Often government employees receive upwards of 15% in super guarantee payments.

Generally, long-term members of public sector super funds have defined benefits funds while newer members tend to have an accumulation fund.

There are 2 major public sector super funds offered by the federal government:

Public Sector Superannuation accumulation plan (PSSap). This is the super fund for current and former Australian government employees.

Australian Defence Force Superannuation (ADF Super). The super fund for members of the Australian Defence Force (ADF), including full-time reservists.

There are 11 public sector funds, however these 2 are the only ones available to new members.

What about the Public Sector Superannuation Scheme?

The Public Sector Superannuation Scheme (PSS) was established under the Superannuation Act 1990 exclusively for employees of the Australian Government.

Since 1 July 2005, no new members have been allowed to join the PSS. However, if you’re a PSS preserved member or PSS invalidity pensioner, you may be able to rejoin the PSS as a contributing member.

The PSS is a defined benefit super fund with an accumulation component for any members with transferred amounts and/or super co-contributions.

How does the Public Sector Superannuation Scheme work?

Only contributing members can put money into their super or receive employer contributions. The benefit provided to contributing members of the PSS is defined by the final average salary and an accrued benefit multiple.

In the Public Sector Superannuation Scheme, your employer makes contributions in two different ways:

1. A fortnightly contribution - the productivity component, and
2. An employer component that is calculated when you leave the PSS.

What are the benefits of investing with the Public Sector Superannuation Scheme?

If you invest with the Public Sector Superannuation Scheme, you’ll receive a number of benefits that will help boost your retirement savings. Here’s a few of the benefits you receive:

• Competitive cost. Employers contribute toward the costs of administering the PSS, which means that no administration fees are taken from your account. The PSS pays no commissions to financial advisers.
• Investment choice. The default fund or the Cash Investment option are available to preserved and associate members. There is no choice of investment option for contributing members as the defined part of the benefit is unaffected by investment performance.
• Invalidity and death benefits. The PSS offers partial invalidity retirement and death benefits at no cost. Additional death and invalidity cover is available for contributing members who are unable to reach their maximum benefits limit at a relatively low cost.

Insurance in your super

Death, partial invalidity and invalidity retirement benefits are available through the scheme to help protect your current lifestyle and provide for you or your family in the event of sickness, injury or death.

The calculation of an invalidity retirement benefit for contributing members under age 60 depends on a number of factors including:

• Your final average salary.
• Your accrued benefit multiple at retirement.
• A multiple based on what would have accrued had contributions continued to age 60 (prospective multiple), at the greater of 5% or the average percentage rate contributed over the 78 pay days (total pay days, if less) prior to the date of invalidity retirement or death.
• The maximum benefit limited.
• Whether you have been classified as a limited or full benefits member.

A partial invalidity pension is a form of income maintenance. It’s paid as a pension when your salary is permanently reduced due to a medical condition. A partial invalidity pension is not paid where a member:

• Has reached maximum retiring age (usually 65).
• Has less than three years membership and/or is a limited benefits member.
• Ceases to be a member of the PSS.
• Is entitled to compensation under a Commonwealth or State or Territory law providing for worker’s compensation.
• If the medical conditions has been caused by willful action for the purpose of obtaining an invalidity benefit.

Death benefits are payable to your spouse and/or children should you die while you are a contributing member, a preserved member or after retirement provided you were receiving a PSS pension.

If you die while you are a contributing member and were not a limited benefits member, the pension payable to your dependants will be a percentage of the invalidity pensions that would have been payable had you retired on invalidity grounds.

Our expert says

"If you're a government employee you're not required to go with the public sector fund for your super - you can still choose your own super fund. However, public sector funds usually have competive fees and returns, and are the default fund offered by government employers."

Alison Banney

Editorial Manager, Money

What are my options instead of a public sector super fund?

If you're unable to join a public sector fund, you'll instead need to compare super funds that are open to all workers. If you want a bit more help, you can take a look at some of our best super fund picks or our guide on how to choose a super fund.

Frequently Asked Questions

• How do I join a Public Sector Superannuation fund?

  A public sector fund is only available to public sector (government) employees, and in some cases, former government employees. You can't choose a public sector fund although some of them let you choose to remain a contributing member when you leave the public sector.

  In these circumstances, you may be able to arrange for your new employer to contribute to your public sector fund.

• How do I join the PSS?

  From 1 July 2005, the PSS closed to all new members. However, if you're a PSS preserved member or PSS invalidity pensioner, you may be able to rejoin the PSS as a contributing member.

  So if you're trying to apply for a public sector super fund, most likely, you won't be able to do it unless you're a preserved member or PSS invalidity pensioner.

• What super do government employees get?

  Government employees get at least 15% super. This is much higher than the national super guarantee rate of 12% as of 1 July 2025.

• Is AustralianSuper a public sector super fund?

  No, AustralianSuper is an Industry fund. However, government employees can choose to have their super with AustralianSuper if they wish to.

• Do I need to go with the public sector super fund?

  No, it's not compolsory for government employees to go with the public sector super fund. however, it is the default fund for most government employers.

Written by

Thomas Stelzer

Journalist

Tom Stelzer is a journalist with 6 years of experience covering personal finance, specialising in investment and cryptocurrency. With a Master of Media Arts and Production and a Bachelor of Communications in Journalism from the University of Technology Sydney, Tom provides expert analysis on digital assets and market trends, helping readers navigate the fast-evolving world of finance. See full bio