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First State Super sets TRAP
After going public offer earlier this year, big NSW public service-based fund First State Super has introduced two allocated pension products.
According to First State chief executive Michael Dwyer, the new products have been developed in response to strong demand from members.
He described First State Super’s Transition to Retirement Allocated Pension (TRAP) as being a non-commutable pension for members who have reached preservation age and wished to draw on their super before retiring permanently from the workforce — perhaps while working full or part-time, and continuing to contribute to their super.
Dwyer said that when members finally retire at or beyond preservation age, or reach age 65, the TRAP would automatically convert to a First State Super Allocated Pension, which meant benefits could be taken in a lump sum if required.
First State said it had based development of the product on the outcome of a recent retirement intentions survey carried out by the NSW Premier’s Department, which revealed that 27 per cent of respondents (all aged 45 years or more) intended to retire from the public sector in less than five years.
The survey had also revealed “two-thirds of those who intend to retire from the public sector in less than five years, intend to continue in some form of paid employment — suggesting that retirement timing may be open to influence”.
“Having had an insight into the retirement intentions of NSW public service employees, we felt the time was ripe to introduce appropriate allocated pension products to meet the needs of our members”, Dwyer said.
Neither of the two First State Super pensions attract entry fees, and each offers 10 investment options or strategies.
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