August 06 2020
No one knows your New Scheme better than ESSSuper.
The New Scheme is exclusively for employees, including temporary employees, who joined the Victorian Public Service, Teaching Service, and participating agencies between 1 July 1988 and 31 December 1993. This Scheme also includes members who have transferred from other funds.
The New Scheme generally provides lump sum superannuation benefits on retirement, resignation, retrenchment, ill health, death and disability pension.
The end benefit for defined benefit funds is calculated differently from the accumulation-style super that some of your peers may have. As a New Scheme member, your benefit depends on a number of elements such as: your salary, age, period of service, contribution rates and full or part-time employment status.
Your benefits are generally not impacted by investment performance.
Benefits and risks
There are a range of benefits of New Scheme membership, including:
- Your benefit is not impacted by investment performance
- You can make beneficiary nominations
- Benefits are payable on retirement, resignation, dismissal, retrenchment, death and disability (provided you meet a release requirement)
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 final benefit, which you can read about here.
How your New Scheme works
Throughout your working life, your employer will make contributions to your New Scheme on your behalf.
You may also choose to contribute to the fund, at rates of either 0%, 3% or 5%; or, in certain limited cases, 7% of your after-tax salary.
If you choose to contribute from your pre-tax salary (known as salary sacrificing), the rates will be higher, to account for the 15% contributions tax. Find out more about contributions in the New Scheme Handbook (PDF 821KB).
Your end benefit is calculated using a formula which takes into account a number of elements, including:
- your salary
- period of service
- contribution rates, and
- full or part-time employment status.
Grow your super: for information on ways to increase your end benefit
Once you are eligible, you have a number of options, resulting in a lump sum payment. In limited circumstances, a pension may be payable.
You can transfer1 your lump sum benefit into our award-winning Income Stream. This option provides a regular and flexible income in retirement.
Find out all about our Retirement Income Streams here
Partnering your New Scheme with an Accumulation Plan
You can open an Accumulation Plan today, even if you are still working.
There are some potential benefits to doing this, such as topping up your insurance2, consolidating your super1, 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.
Thinking about retirement?
Your entitlements and options are dependent on your circumstances, and the complexities can be confusing. It's important that you receive accurate information - remember, no one knows your New Scheme better than ESSSuper.
We will help you understand your options in detail, and if you need, we can advise you on which option is best for your personal situation through our financial planning service.
We also offer regular seminars which will help you to understand your options in more detail.
Be in the know: Find out more about our advice and education services today3.
Thinking about retirement?
Contact us to discuss your options today.