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There are three types of disability benefits offered through the New Scheme; disability retirement pension, temporary pension for disability or ill health lump sum.
Disability retirement (permanent) pension
If ESSSuper considers that you have suffered a disability before age 60, you will receive an indexed fortnightly pension payable for life. We will assess your medical status after considering reports from your treating doctor and from at least two medical practitioners appointed by us. A disability retirement benefit will be paid to you when your employment is terminated.
Your disability pension is calculated using your:
- service to the date of disablement,
- prospective service to age 60 based on the higher of 5% personal contribution rate or the highest rate at which the New Scheme member has contributed for more than half of the 3 years immediately preceding retirement (which may be adjusted for periods of part-time service),
- final average salary at the time of your disability retirement.
Your disability pension is payable for life, unless you are found fit for duty at one of the periodical reviews conducted by us or you are engaging in gainful employment, in which case your pension may be reduced or suspended.
The disability retirement pension is eligible for a special 15% tax offset and is increased twice a year with positive movements in the Consumer Price Index (CPI).
Part-time service
If you are employed on a part-time basis prior to retiring on the grounds of disability, prospective service to age 60 is calculated by using the average time fraction of your service over the last three years to determine your full-time equivalent.
If you have reduced your hours from full-time to part-time due to a medical condition, we may recognise this service as full-time for benefit purposes. If this is the case please contact us on 1300 655 476.
Temporary pension for disability
If ESSSuper believes that you may substantially recover from your injury or illness, we may decide to pay you a temporary pension. A temporary pension may be payable for up to two years, with reviews at least every six months. If this is the case your employment is not terminated and you remain an active member of the Scheme.
The temporary pension is paid fortnightly and is calculated in the same manner as a permanent disability retirement pension except you are not entitled to claim the 15% tax offset against the pension, and therefore there is no pension reduction applied in respect of tax status.
Ill-Health Benefit
If you are under 55 years of age and our medical assessment indicates that you cannot carry out your full current duties but you are capable of other employment, an Ill-health lump sum benefit may be offered.
Any payment of an ill-health lump sum benefit is a full and final settlement of all superannuation entitlements in the Scheme.
Other circumstances under which a lump sum may be payable
TOTAL LUMP SUMS
Initial assessment:
Prior to age 65, a lump sum payment in lieu of the pension may be approved at the discretion of the Board at the initial assessment date. If approved, you may receive a lump sum equal to part or all of your accrued retirement benefit at the date of retirement (approximately 12 times the annual rate of pension). If you receive a lump sum equal to all of the accrued retirement benefit, there will be no further entitlement to benefits from the Scheme.
Current disability pension recipients:
If you are already receiving a permanent disability pension you can apply to ESSSuper for a lump sum payment in lieu of your disability pension which is subject to Board approval. Specific documentation will be requested if you apply for a pension conversion.
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