Working Income Streams

If you'd like to work part time in the lead up to your retirement, but are not ready for the loss of a regular income, then an ESSSuper Working Income Stream may be right for you. Thanks to Federal Government transition-to-retirement rules, you can now ease into retirement by moving to part-time work, but supplementing your salary with income stream payments.

What is a Working Income Stream, and how does it work?

The ESSSuper Working Income Stream is designed to provide a regular income to eligible ESSSuper members who have reached their preservation age but wish to continue to work in either a full or part-time capacity.

If you'd like to work part time in the lead up to your retirement, but are not ready for the loss of a regular income, then an ESSSuper Working Income Stream may be right for you. Thanks to Federal Government transition-to-retirement rules, you can now ease into retirement by moving to part-time work, but supplementing your salary with income stream payments.

The Working Income Stream may also help you if you want to continue full time work past your retirement age, but boost your retirement savings in a tax effective way.

If you are an active member of a defined benefit fund with ESSSuper, you will require a trigger event (such as resignation or retirement) to become eligible for transitioning to a Working Income Stream.

1. You should check any insurance arrangements that may be forfeited, or any other effects this transfer may have on your benefits, before rolling your money into our fund.

Why choose an ESSSuper Working Income Stream?

The Working Income Stream is an easy and convenient way to continue your membership with ESSSuper when you retire. It offers:

• If you are 60 years of age or over, all income payments are tax free.
• If you are between your preservation age and age 60, any income taken (other than any tax free component) is taxable, but a 15% tax offset may reduce any tax liability on this (and other) income.
• You can choose up to nine investment options which range from shares to cash. You choose the mix that suits your circumstances.
• You can choose the frequency of payments – from fortnightly through to annually.
• You can select the level of income you need, but legislation dictates this must be between 4% and 10% of your account balance for the financial year. The percentages are based on your age and account balance at commencement and at 1 July each year.

Transitioning from a Working Income Stream

When a Working Income Stream member reaches age 65, ESSSuper will automatically transfer the member from a Working Income Stream to a Retirement Income Stream effective from the first day of the following month.

If a member meets any other condition of release the member will need to notify ESSSuper. If the member already has a pending investment switch request when the notification is received then the member will be switched from Working Income Stream to Retirement Income Stream in line with the processing of their pending investment switch. If the member does not have a pending investment switch request when the notification is received and if the notification is received by close of business on the last business day before the 21st day of the month, the member will be switched from their Working Income Stream to a Retirement Income Stream effective from the first day of the following month (e.g. if the notification is received by 20th June, the member will be switched to a Retirement Income Stream effective 1st July). If the member does not have a pending investment switch request when the notification is received and if the notification is received after the 20th day of the month, the member will be switched from Working Income Stream to Retirement Income Stream  effective from the first day of the month following the next month (e.g. if notification is received on 23 June, the member will be switched to a Retirement Income Stream effective 1 August). 

The balance that is transferred to the Retirement Income stream will count toward your Transfer Balance Cap. For more information on this see Tax & Super.

Emergency Services Superannuation Board ABN 28 161 296 741 (ESSB), the Trustee of the Emergency Services Superannuation Scheme ABN 85 894 637 037 (ESSSuper). The information contained on this web page is of a general nature only. It should not be considered as a substitute for reading the relevant ESSSuper Product Disclosure Statement (PDS) that contains detailed information about ESSSuper products, services and features. Before making a decision about an ESSSuper product, you should consider the appropriateness of the product to your personal objectives, financial situation and needs. It may also be beneficial to seek professional advice from a licensed financial planner or adviser. An ESSSuper PDS is available on our PDS and handbooks page or by contacting us.