The Victorian Charter of Human Rights and Responsibilities sets down an agreed set of human rights, freedoms and responsibilities that are protected by law. The legislation that governs members’ superannuation entitlements has been reviewed and a number of changes are being made to minimise the possibility of these Acts not complying with the charter.

A bill has now passed through Parliament to make changes to the Acts that govern ESSSuper's funds. These changes are effective 1 July 2010.

Many of the changes are to legislation that was written many years ago and no longer reflect community standards or expectations. Some of the changes are also being made to ensure there are reasonable limits on ESSSuper’s powers in administering the funds.

The following is a summary of the key changes being made: 

• Extending defined benefit contributory service from age 65 to age 75.
• Same sex partners of current pensioners will be entitled to a reversionary pension upon death of the pensioner. 
• Members of all funds can now make a nomination as to who are their dependents, including adult children.
• For funds that provide pensions upon death; disabled adult children that are financial dependents may be eligible to receive a benefit. 
• Establishment of a set of guidelines for ESSSuper determining: 
  - payment of benefits in the case where a member has more than one spouse. 
  - payment of benefits in the case where a member has an inability to manage their own financial affairs. 
• Members of ESSS Defined Benefit Fund and SERB Scheme on up to 12 months of unpaid parental leave will continue to receive death and disability cover and accumulate towards retirement. 
• New reversionary pensions will no longer be reduced if there is more than a five year age difference between the former member pensioner and a younger spouse. 
• Spouses of all SERB Scheme members will be entitled to a reversionary pension. (If members were married after age 60 there was no entitlement prior to these changes.)
• Member entitlements are no longer subject to medical classifications which reduced benefits for some members due to prior medical history. This change does not affect those members who are already claiming a benefit.

Please note that ESSSuper intends on contacting those members specifically affected by some of these changes and will be providing further information in our Newsletters to members and employers.

Should you have any queries regarding the changes please contact ESSSuper.

30 June 2010

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