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Fund Types

Resignation Benefit

Your resignation benefit depends on when in your life stage you resign.

Resigning before your minimum retirement age

Benefits payable on resignation depend on whether you resign before or after your minimum retirement age, which is normally age 55 (age 50 for eligible prescribed officers).

Resigning before your minimum retirement age entitles you to receive:

  • an immediate refund of your contributions and earnings (some of which may be immediately available however there will always be a preserved component which the member cannot access), and 
  • a deferred pension payable upon application after reaching your minimum retirement age, irrespective of whether you have permanently retired. (Note pensions not subject to preservation after age 55).

Note: if you delay your application until after your minimum retirement age, the benefit will commence from the date of acceptance of your application, (i.e. it cannot be backdated to your minimum retirement age). If you apply over the age of 60 it will be backdated to age 60.

The level of deferred pension will depend on:

  • your final average salary, 
  • your age at resignation, 
  • your recognised service at resignation, 
  • your prospective service to age 60, and 
  • which of the available resignation benefit payment options you choose.

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

Taking the 54/11 resignation option

What is 54/11?
The 54/11 resignation option is simply a resignation benefit paid to a member who resigns immediately prior to their minimum retirement age of 55.

Minimum retirement age is generally 55 years, except in the case of prescribed class officers who have a minimum retirement age of 50 years.

Different benefit options are available to a member dependant upon whether their final date of service occurs before, on or after their minimum retirement age.

Resigning before age 55 allows a member to receive a refund of their contributions and accrued earnings plus a pension available from the age of 55. The benefit from a “54/11” resignation comes from potentially receiving a larger lump sum through the refund of contributions and earnings than could be obtained by commuting part of the pension after reaching 55 under an age retirement benefit.

Example:
By resigning as close to (but before) your 55th birthday (for instance at 54 years and 11 months – “54/11”), you can maximise your service and FAS but still access a resignation benefit.

Always seek advice before making any decisions
“54/11” is not necessarily the best option for all members of the Revised Scheme and we encourage members to have an interview with one of our Member Education Consultants and seek financial advice from an ESSSuper adviser.

ESSSuper has an arrangement with Adviser Network Pty Ltd AFSL 232729 to provide financial product advice to ESSSuper members.

Resigning after your minimum retirement age

If you resign after your minimum retirement age, you will be entitled to the Age Retirement Benefit.

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Have you resigned, or are you about to resign?

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Make an appointment with a Member Education Consultant before making any decisions.

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Call our Member Contact Centre on 1300 655 476