Payment of benefits

Exactly how your benefit is paid to you is dependant on the circumstances in which you applied for your resignation benefit.

At the date of resignation

Payments of accumulated contributions plus earnings
Contributions plus earnings can be paid as: 

• an immediate cash lump sum which may consist of part or all of the contributions plus earnings that had accrued up to 30 June 1999, and 
• a preserved lump sum component consisting of the contributions plus earnings, accrued after 30 June 1999. This component can only be rolled over to a complying superannuation fund like ESSSuper’s Accumulation Plan, or 
• a rollover of both 1 and 2 above.

Payments of the present-day value lump sum
If you elect to convert your deferred pension to a present-day value lump sum this can only be paid as: 

• a rollover to a complying superannuation fund, such as the ESSSuper Accumulation Plan.

It is important to note that a discount factor of 4% per year for the period between your claim date and your minimum retirement age will be applied to convert your deferred benefit to a present day value lump sum.

Under other circumstances

Your deferred pension may also become payable if you:

• elect to convert your deferred benefit into a present-day value lump sum in lieu of your deferred pension, or 
• successfully apply to receive it on the grounds of disability, or 
• successfully apply for early release of part of the benefit on the basis of financial hardship* or on compassionate grounds, or 
• become terminally ill, or
• attain age 60, or 
• die.

* If you are applying for release due to financial hardship and you are under age 55, you must provide written proof from Centrelink confirming that you have been receiving a benefit from them for at least six months.

From your minimum retirement age

Payment of your deferred pension
To receive your deferred pension, you will need to apply for it after reaching your minimum retirement age. It will be payable even if you have not yet retired from the workforce, although some of it may be subject to preservation if under age 55.

Your payment will be a lifetime pension, paid fortnightly and indexed in line with the CPI for all capital cities.

Convert your deferred pension to a lump sum.
Upon reaching your minimum retirement age you can elect to convert part or all of you pension into a lump sum. This election must be made within three months either side of the date your pension entitlement commences.

If you do not exercise your option to convert part or all of your pension to a lump sum within three months either side of the date your pension entitlement commences, you will have another opportunity to apply for a lump sum during the three months prior to your 65th birthday. This lump sum conversion becomes effective when you turn 65.

• Want to know more about deferred pensions?