July 13 2020
Thinking about retirement?
Contact us to discuss your options today.
No one knows your Revised Scheme better than ESSSuper.
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 benefit option (PDF 282.2KB)
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, which you can read about here.
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 your Revised Scheme Handbook (PDF 932.4KB).
Your end benefit is calculated using a formula which takes into account a number of elements:
- your salary
- period of service
- full or part-time employment status.
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Once eligible, Revised Scheme members have a number of benefit options:
- Life pension
- Part lump sum, part life pension
- Lump sum payment.
The 54/11 option
As a member of the Revised Scheme, you also have access to the 54/11 option. This option allows you to elect to resign just prior to your 55th birthday 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. Learn more: 54/11 benefit option (PDF 282.2KB)
You can transfer1 your lump sum benefit into our award-winning Accumulation Plan or take out an Income Stream. Our Accumulation Plan will give you the flexibility to continue to receive contributions if you are still working, consolidate your super1, increase your insurance cover2 and nominate beneficiaries.
Find out more about our award winning Retirement Income Streams
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 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.
Find out more about our award winning 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 Revised 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.