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Further important information about changes that affect active members of the ESSS Defined Benefit Fund that also hold an Accumulation Plan account

April 20 2024

Our Significant Event Notice dated 22 November 2021 outlined changes to our administrative systems and their impacts on you, and is available online at esssuper.com.au/next-level-service. We would like to provide you with further important information regarding the impact of the change from crediting rates to daily unit pricing and the affect this will have on active members of the ESSS Defined Benefit (DB) Fund who also maintain an Accumulation Plan account.

Currently, on leaving employment of your emergency services employer, late payment interest applies to your ESSS DB Fund lump sum and your Accumulation Plan account from the date you terminate employment to the earlier of the date you provide payment instructions or 60 days.

From 1 February 2022, the following changes will occur:

Active Members of the ESSS DB Fund with an Accumulation Plan

  • If you are an active ESSS DB Fund member and you have an Accumulation Plan account at the time you terminate your employment with an emergency services employer, late payment interest is no longer required to be applied to your Accumulation Plan account due to the implementation of daily unit pricing. Instead, your Accumulation Plan account will continue to accrue earnings based on the daily unit price of your nominated investment option, or the current default investment option if you have not selected an investment option. Your ESSS DB Fund lump sum will continue to have late payment interest, at the ESSS DB Fund earning rate, applied to it until your combined ESSS DB Fund lump sum and Accumulation Plan account is paid according to your instructions or 60 days elapses, whichever occurs first.
  • If you do not provide payment instructions for your combined accounts within 60 days, your Accumulation Plan account and your ESSS DB Fund lump sum benefit will be transferred to a new Accumulation Plan account and the combined amount invested in the default investment option (currently the Growth investment option). Once your new Accumulation Plan account has been established you can switch your investment option at any time.
  • In the event of your death, the Board will pay your ESSS DB Fund lump sum, Accumulation Plan account and any insurance benefit to your nominated beneficiary, dependant(s), or legal personal representative. Upon notification of your death, your benefit in the ESSS DB Fund will have late payment interest applied to it. From 1 February 2022, your Accumulation Plan account will be switched to the Cash investment option on the date ESSSuper is notified of your death and will accrue earnings based on the daily unit price of the Cash investment option.

Members of the ESSS DB Fund only (who do not have an Accumulation Plan account)

  • There is no change to the current process. If you terminate your employment with an emergency services employer, your ESSS DB Fund lump sum benefit will have late payment interest applied to it until your benefit has been paid or 60 days elapses, whichever occurs first. If you do not provide payment instructions for your ESSS DB Fund benefit within 60 days, your account balance will be transferred to a new Accumulation Plan account. Your balance in your new Accumulation Plan account will be invested in the default investment option (currently the Growth investment option), and accrue earnings based on the daily unit price of that investment option. Once your Accumulation Plan account has been established you can switch your investment option at any time.

Daily unit pricing and investment switching

This change to daily unit pricing and investment switching in the Accumulation Plan will be implemented automatically on 1 February 2022. From mid-March 2022, you will be able to switch your investment options at any time by logging into your Members Online account and navigating to the Investments / Switch menu.

Need more information?

If you have any questions, please contact us via email at info@esssuper.com.au

To find out more about daily unit pricing, the changes we are making to our systems, and the limited service period from Monday 24 January 2022 to mid-March 2022, please visit esssuper.com.au/next-level-service

 

Emergency Services Superannuation Board (ABN 28 161 296 741) (ESSB), the Trustee of the Emergency Services Superannuation Scheme (ABN 85 894 637 037)  (ESSSuper).

Benefits in ESSSuper's Accumulation Plan, Income Streams and Beneficiary Account products are not guaranteed or underwritten by the Victorian Government or ESSSuper, and ESSSuper does not come under the jurisdiction of the Australian Financial Complaints Authority

Normal terms and conditions and waiting periods apply. The information contained in this document is of a general nature only. It should not be considered as a substitute for reading ESSSuper's 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 at esssuper.com.au/pds or by calling 1300 650 161.