The Superannuation Legislation Amendment Act 2019
ESSSuper
Defined Benefit members now have even more ways to maximise their retirement
benefits, with the introduction of The Superannuation Legislation Amendment Act
2019.
Effective
from 23/10/2019, this act introduces the following changes to the Emergency
Services Defined Benefit Fund. Changes will apply for 23 October unless an earlier date has been specified.
If you’d like to take advantage to any of the new changes and discuss the options available to you, please contact our Member Service Centre on 1300 650 161.
If you've reached your maximum multiple
You will now receive additional Employer Contributions to be paid into the ESSSuper Accumulation Plan.
These contributions will be back dated to 1 July 2019, or the date you obtained your maximum benefit multiple if after 1 July 2019. They will commence at a rate of 3% of your salary and will increase to 12% by 2026/27 financial year.
Higher superable salaries will be maintained
If your salary is reduced on or after 1 July 2019 for any reason, your higher superable salary will be automatically maintained, unless you elect otherwise. Contributions are still payable on the superable salary that has been maintained.
Contributions will be calculated on a fixed superable salary
As at 1 July each year, your superable salary will be used to calculate the contributions payable for the 12 months commencing 1 September each year. Contribution amounts payable from 1 September 2019 will be based on your superable salary at 1 July 2019 and will be fixed for the following 12 months unless you change your contribution rate or time fraction.
New option for Transition to Retirement
ESS Defined Benefit members can now access part of their Defined Benefit entitlement, once they reach preservation age, to commence a Transition to Retirement pension.
An eligible member may transfer between 20% and 50% of their Defined Benefit entitlement to an ESSSuper Working Income Stream. If you elect this option, your accrued multiple will be reduced to reflect the amount transferred to the Working Income Stream.
The Working Income Stream will enable eligible members to transition to retirement by supplementing their salary with regular pension payments as they move into part-time work.
New changes for members on unpaid parental leave
Members on unpaid parental leave will now be able to elect a contribution rate for up to 12 months with payment deferred until they return to work.
On return to work ESSSuper will contact you to make arrangements for any outstanding payment accrued while on leave. These payment options include lump-sum payments or additional regular deductions from your pay.
Previously members on unpaid parental leave were deemed to be nil contributors for the first 12 months.
New contribution rates
There are now two additional catch up rates for operational DB members of 9% and 10%.
Where a member’s average contribution rate is less than 7% over their total period of membership, they will now have access to two additional catch-up rates. This will allow members benefits to accrue at a faster rate.
New changes for Police recruits
All Police recruits are now eligible to receive a death benefit from the Defined Benefit Fund. Previously, Police recruits without dependants would receive a lower death benefit than those with dependants.