State super crediting rates

Investment returns generally don’t impact defined benefit funds. However, if your retirement options include resignation or retrenchment benefits, crediting rates may affect the refund of contributions plus interest.

Crediting rates history

* An interim crediting rate is applied in the year a member leaves the fund for the period up to the date of exit. The interim crediting rate is calculated in the same way as the declared crediting rate except that an estimated rate is used for the current financial year. The estimated rate will be the actual investment earnings (net of expenses and tax) for the year to date, plus an assumed rate (net of expenses and tax) for the remainder of the financial year. The interim crediting rate will also be no less than zero.

Declared annual crediting rates

Crediting rates are used when the benefit payable consists of a refund of contributions plus interest (generally resignation or retrenchment benefits).

Crediting policy for state super defined benefit assets

The earnings are calculated and applied annually at 30 June using the declared crediting rate calculated as the compound average of the current and previous two years' annual investment earnings (net of expenses and tax).

It's important to note that the declared crediting rate will never be less than 0.0% p.a.

For example, if the result of the compound average calculation is -1.0% p.a. then the declared crediting rate for that year would be 0.0% p.a. Any shortfall is not considered in future years' calculation of rates.

Administration Costs and Investment Management Fees

No fees apply for New Scheme Members unless they receive a benefit that comprises a refund of contributions and earnings. Administration costs and investment management fees are deducted prior to calculating the annual rate of earnings. The following table shows the investment and administration cost fees deducted from crediting rates prior to the crediting of earnings to member accounts.

State Superannuation Fund: Indirect management costs deducted from fund crediting rates.

This investment commentary does not constitute advice. All investment figures quoted relate to before-tax performance of the relevant industry benchmark. Investment returns cannot be guaranteed as investment markets can be volatile. As a consequence, returns can be positive or negative. Past investment performance is not a reliable indicator of future performance. 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 (AFCA).

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