We apologise to our members for the extended hold/wait times and delays to withdrawals from defined benefit accounts. We expect to resolve most issues by the end of May 2022 and are confident the majority will be resolved much sooner. Please read our service update for more information.

Also note: The ESSSuper mobile app has been updated and is available to download. Visit our Members Online web page for more details.

Revised Scheme

May 25 2022

Thinking about retirement?

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No one knows your Revised Scheme better than we do.

The Revised Scheme is a defined benefit fund that was introduced in 1975 and was closed to new members in 1988. Members are permanent employees of the following organisations prior to 30 June 1988:

  • The Victorian Public Service
  • The Teaching Service, and
  • Other participating agencies.

The end benefit for defined benefit fund is calculated differently from accumulation-style super funds, that some of your peers may have. As a Revised 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 to your Revised Scheme membership, including:

  • Your benefit is generally 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)
  • You may have access to the "54/11" resignation option.

There is a 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.

How your Revised Scheme works

Throughout your working life, your employer will make contributions to your Revised Scheme on your behalf.

You are also required to contribute to the fund, at a rate determined by your age as at 1 May, and calculated as a percentage of your superable salary.

You can elect to pay your contributions from either your pre-tax salary (salary sacrifice) or post-tax salary. For more information, please read the Revised Scheme Handbook on our PDS and handbooks page.

Your end benefit is calculated using a formula which takes into account a number of elements, including your:

  • Salary
  • Age
  • Period of service, and
  • Full- or part-time employment status.

Grow your super - see the strategies that can make the difference

The "54/11" resignation option

As a member of the Revised Scheme, you also have access to the "54/11" resignation option. This option allows you to elect to resign just prior to your 55th birthday (at age 54 and 11 months) and receive a refund of all of your personal contributions to date, plus interest. At your 55th birthday you will also be eligible to apply for your pension.

What is the "54/11" resignation option?

The "54/11" resignation option is a resignation benefit paid to an ESSSuper Revised Scheme member who resigns prior to their minimum retirement age of 55 (at age 54 and 11 months). Resigning before age 55 allows you to receive a refund of your contributions and accrued earnings plus a pension from the age of 55*. Because you're resigning from your job – not retiring from the work force – you can receive the pension and continue employment.

* Please note that your application is required to be submitted prior to age 55 to commence the pension from age 55. If the application is received after your 55th birthday, the pension will start from the date the application is received or from age 60, whichever is earliest.

Features of the "54/11" resignation option

The features of the "54/11" resignation option are:

  • You receive a lump sum refund of contributions and earnings, and a pension from age 55.
  • It provides you with a lifetime pension which is a source of regular fortnightly income just like your current salary. Benefits of the pension include:
    • It's indexed to Consumer Price Index (CPI) twice per year – so it keeps up with the cost of living
    • You cannot out-live this pension – it doesn't run out
    • Your partner gets 2/3rds of the pension if you die
    • Payments begin once you turn age 55*
    • It's tax free after turning age 60 up to prescribed limits.**

It is important to note that once you leave the Revised Scheme you cannot rejoin it. However, if you continue employment, your new employer must pay superannuation guarantee contributions to a super fund of your choice or your stapled super fund, if you do not choose a super fund.

* Please note that your application is required to be submitted prior to age 55 to commence the pension from age 55. If the application is received after your 55th birthday, the pension will start from the date the application is received or from age 60, whichever is earliest.

** A defined benefit income cap of $106,250 is currently applied to limit the amount of Defined Benefit Lifetime Pension income received tax free.

Who is the "54/11" resignation option available to?

The "54/11" resignation option is available to members of the Revised Scheme. As no two individual's circumstances are the same, the "54/11" resignation option may not be the best option for everyone. For this reason we encourage you to call us to arrange an appointment for an individual general advice consultation with one of our Member Education Consultants before making this decision.

As you need to resign from your job in order to claim the "54/11" benefit, it is a decision that should not be rushed into.

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 Revised Scheme better than ESSSuper.

We can help you understand your options in detail, and if you need, we can refer you to our Financial Advisers†, who can advise you on which option is best for your personal situation.

We also run regular webinars which can help you to understand your options in more detail.

Be in the know: Find out more about our advice† and education services today

Exempt officers

Exempt officers are members who cease active membership of the Revised Scheme without having to terminate their employment with their current employer. They may be entitled to deferred benefits without terminating their employment.

Before exempting out of the Revised Scheme, you first need to:

  • Confirm with your employer whether you're eligible to become an exempt officer.
  • Receive exempt officer information/estimates from ESSSuper.

The formal eligibility requirements vary. Please refer to the Revised Scheme Handbook on our PDS and handbooks page or contact us for more details.

Partnering your Revised 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 insurance*, consolidating your super**, 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.

Find out more about our award winning Accumulation Plan

Thinking about retirement?

When you decide to retire from the Revised Scheme you have three options to consider:

1. You can receive a lifetime pension, which is a source of regular fortnightly income just like your current salary. Benefits of the pension include:

  • It's indexed to CPI twice per year – so it keeps up with the cost of living
  • You cannot out-live this pension – it doesn't run out
  • Your partner gets 2/3rds of the pension if you die.

2. You can elect to convert some of your fortnightly pension to a lump sum, or
3. You can elect to convert all of your fortnightly pension to a lump sum*.

* Please note that your application to convert your pension is required to be submitted by no later than 3 months after your retirement date. If you do not convert your pension at that time, you will have another opportunity at age 65, at which time your application to convert your pension is required to be submitted within 3 months prior to age 65.

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 Revised Scheme better than ESSSuper.

We can help you understand your options in detail, and if you need, we can refer you to our Financial Advisers†, who can advise you on which option is best for your personal situation.

We also run regular webinars which can help you to understand your options in more detail.

Be in the know: Find out more about our advice† and education services today

 

Before making any decisions about ESSSuper products or services, you should read the applicable PDS or Handbook. You can access all of our publications here.

* Insurance cover is subject to eligibility criteria and other terms and conditions in the Policy. Please read the Product Disclosure Statement relevant to your particular fund, available from ESSSuper, for more information.

** You should check any relevant exit fees you may incur, or any insurance arrangements that may be forfeited, or any other effects this transfer may have on your benefits, before rolling your money into our fund.

† ESSSuper Financial Advisers are authorised representatives of Link Advice Pty Ltd (Link Advice). Link Advice holds a current Australian Financial Services Licence No. 258145 and is responsible for the financial services provided to you.  ESSSuper has an arrangement with Link Advice Pty Ltd to provide financial advice to ESSSuper members. ESSSuper pays Link Advice a fee for this service. Neither the Board, nor the Victorian Government, guarantee or endorse any recommendations made by Link Advice, or are responsible for the advice and actions of Link Advice.