Product Disclosure Statement - PSS

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The PSS is a defined benefits scheme. Unlike more common accumulation funds, the PSS provides you with a benefit that is ‘defined’ by your Final Average Salary and an Accrued Benefit Multiple (which depends, in part, on your rate of contributions to the PSS). These two factors have a greater influence on a contributing member’s benefit than investment returns. Final Average Salary × Accrued Benefit Multiple = Your Benefit PSS benefits, can, depending on the circumstances, be taken as a lump sum, pension or a combination of both. If you have become a member as a result of a Family Court splitting order, your benefit is calculated differently. For more information see the Family law and super splitting - how this is done and what happens next booklet available on our website. 4. Risks of super Super, like any investment, has risks. The opportunity to choose how you invest your super in the PSS carries with it a responsibility to make well-informed decisions suitable to your personal objectives, financial situation and needs. The level of risk appropriate for each person will vary depending on a range of factors, including, but not limited to, age, investment time frames, risk tolerance and other investments. The accumulation component, like any investment, has risks. There are significant risks which may affect the accumulation component—see the table below. Each investment option has a different risk level. Assets with the highest long-term expected returns may also carry the highest level of short-term risk. Different options may carry different levels of risk, depending on the assets that make up the option. Risk can be managed and even minimised, but cannot be eliminated. The value of investments will vary. No matter how skilled the investment manager, or how strong performance has been in the past, the level of returns will vary, and future returns may differ from past returns. Returns applying to your accumulation component are not guaranteed and there is always a chance you could receive less than you invested. The amount of your superannuation benefit (including contributions and returns on your accumulation component) may not be enough to provide adequately for your retirement. Further information about the risks of the PSS (including the investment options) is available on our website. You should read the important information about risk before making a decision. Go to the Investment Options and Risk booklet available at www.pss.gov.au/pds. The material relating to risk may change between the time when you read this Statement and the day when you acquire the product. Risk Inflation Asset investment risk Market risk Interest rate risk Currency risk Derivatives risk Fund risk Liquidity risk Insurance risk Super laws* Changes to tax* Description Inflation may exceed the return on investment. Individual assets we buy can (and do) fall in value for many reasons, such as changes in the internal operations or management of a fund or company we invest in, or in its business environment. Economic, technological, political or legal conditions, and even market sentiment, can (and do) change, and this can affect the value of the investments in the fund. Changes in interest rates can have a positive or negative impact directly or indirectly on investment value or returns. We invest in other countries and if their currencies change in value relative to the Australian dollar, the value of the investment can change. We may use derivatives to reduce risk or gain exposure to investment markets when we think it appropriate. Risks associated with these derivatives include the value of the derivative failing to move in line with the underlying asset, market or index, and counterparty risk—the risk that the other party to the derivative contract cannot meet its obligations under the contract. Risks particular to the fund include that it could cease operation, that fraud against CSC could occur, Board restructure and our investment professionals could change. Assets that we invest in can become difficult to trade under certain market conditions. Additional death and invalidity cover is obtained from a third party. There are risks that the additional death and invalidity cover does not meet your individual needs. You should read this PDS and the Additional death and invalidity cover booklet available on our website to ensure that you are eligible and that the cover is right for you. Changes are frequently made to superannuation law and may affect your benefit and your ability to access it. For example, under the existing law, your super benefit may be split by agreement or by court order if you and your spouse permanently separate. Changes can occur to taxes on investments or super generally, which may affect the value of your investment or benefit. * These risks also apply to the defined benefit component of the PSS. 4 of 8 Your Government Super at Work
5. How we invest your money Preserved and associate members have the option of investing in either the Default Fund or Cash Investment Option. There is no investment choice for contributing members. Contributing members have their accumulation component (i.e. member contributions, productivity contributions, transfer amounts and co-contributions) invested in the Default Fund. When choosing an investment option you must consider: > > the amount of time your money will be invested before you need it for retirement > > the likely investment performance > > the level of risk and fluctuation in the value of your investment that you can tolerate. Default Fund Preserved and associate members that do not choose an investment option will have their super invested in our default option called the Default Fund. This is a ‘pre-mixed’ investment option, investing across a range of asset classes, and having a medium- to high-level of risk. The objective of the Default Fund is to outperform the consumer price index (CPI) by 3.5% per annum over the medium- to long-term. The Default Fund is designed to invest in different types of investments that tend to perform independently of each other. By diversifying in this way, the Default Fund reduces its reliance on equity market returns and aims to provide a smoother pattern of long-term returns. This investment option is intended for those investors prepared to take more risk in exchange for potentially higher returns on their investment over the medium- to long-term, and willing to accept moderate- to higherlevels of volatility and periods of negative returns. Such investors tend to have a medium- to long-term investment horizon. The minimum suggested timeframe for holding this option is ten (10) years. The following table sets out the type of assets that make up the Default Fund, and their target allocations. Investment Corporate assets Real assets Sovereign assets Alternative strategies Australian and international shares, private equity and corporate credit Private and public property, infrastructure and other real assets Target 62% 15% Government bonds and cash 9% Multi-asset strategies 14% The following table sets out the permitted range of asset allocations. Target asset allocation range* Corporate assets Real assets Sovereign assets Alternative strategies Australian and international shares, private equity and corporate credit Private and public property, infrastructure and other real assets 30-75% 5-25% Government bonds and cash 5-65% Multi-asset strategies 0-30% * Target exposures to private assets (private equity, private debt and real assets) are limited to around 25% of the fund, with a rebalancing range of ± 10% around that target. You should read the important information about both of our investment options before making a decision. Go to the Investment Options and Risk booklet available at www.pss.gov.au/pds. The material relating to investment options may change between the time when you read this Statement and the day when you acquire the product. Your Government Super at Work 5 of 8
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Product Disclosure Statement - PSS

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