ESSS Defined Benefit Fund
February 23 2017
Do you have enough cover?
Additional insurance1 is available in the Accumulation Plan.
No one knows your ESSS Defined Benefit Fund better than ESSSuper.
The ESSS Defined Benefit Fund (ESSS DB Fund) is an open fund for operational employees of Victoria's Emergency Services. For details about the fund, read the ESSS Defined Benefit Fund PDS (PDF 1MB).
The end benefit for defined benefit funds is calculated differently from an accumulation-style fund. As an ESSS DB Fund member, your benefit depends on a number of elements: your salary, age, period of service, contribution rates and full or part-time employment status.
Your defined benefits are not impacted by investment performance.
Benefits and risks
There are a range of benefits within your ESSS DB Fund membership, including:
- Your defined benefit is not impacted by investment performance
- There are no entry/exit/contribution fees
- You can make binding and non-binding beneficiary nominations
- You can increase your contribution level
- Provided you meet a release requirement, benefits are payable on retirement, resignation, dismissal, retrenchment, death and disability.
There is the risk that your nominated contribution rate and/or period of service may not result in a high enough benefit to sustain you in retirement. However, there are ways to increase your retirement benefit, which you can read about here.
Or, you may want to increase your insurance cover to further cover you and your family in the case of death, disablement, or terminal illness. You can elect to top up your insurance1 cover using our Accumulation Plan.
How your ESSS DB Fund works
Throughout your working life, your employer will make contributions to your ESSS DB Fund on your behalf, at a rate determined by you, generally ranging from 0% - 7%, or 8% for members who are using 'catch-up' due to periods of lower contributions or operational employees who were a member of a prior fund before 1987. Note: not all members can contribute above 5% (i.e. some non-operational members). Refer to the PDS for details.
When you want to access your benefit, provided you meet a condition of release, your benefit will be calculated using a formula which takes into account a number of elements:
- your salary,
- period of service,
- contribution rates, and
- full or part-time employment status.
When you terminate employment you have a number of options. Ask us about transferring2 your benefit into the Accumulation Plan, which will give you the flexibility to continue to receive employer contributions while you are still working, increase your insurance cover1, nominate beneficiaries, or purchase one of our award winning income streams.
Partnering your ESSS Defined Benefit Fund with an Accumulation Plan
Find out all about our Accumulation Plan here.
You can open an Accumulation Plan today, even if you are still working.
There are some potential benefits to doing this, such as consolidating your super2, topping up your insurance1, increasing your end benefit, or accessing a Working Income Stream.
We recommend checking out the Accumulation Plan page or contacting us for further information about partnering your defined benefit with an Accumulation Plan.