Members in the default investment option: your super will move to the new default option

October 26 2024

Significant event notice

What is changing?

At present, the super in your Accumulation Plan account or Beneficiary Account is invested by default in our Balanced investment option.

This significant event notice provides you with notice that we're changing our default investment option to a new option, Balanced Growth Managed, for Accumulation Plan and Beneficiary Accounts.

On 22 November 20241, any super invested in the Balanced investment option in your Accumulation Plan account or Beneficiary Account will move to our new default investment option, Balanced Growth Managed, unless you tell us otherwise before 11:00am on Wednesday 20 November 2024.

 

About Balanced Growth Managed

Balanced Growth Managed aims to support positive retirement outcomes for our members by targeting higher returns for members in the default option.

This option aims to deliver moderately high returns, targeting 3.25% above the rate of inflation. This means that if the consumer price index (CPI) averages 2.75% per year over ten years, Balanced Growth Managed aims for an average return of 6.00% per year during that period.

While the difference between our current and new default options might not appear significant, over time, slight differences in returns can compound to have a real impact.

What's the difference between Balanced and Balanced Growth Managed?

  Balanced
(Current default investment option)		 Balanced Growth Managed
(New default investment option from 21 November 2024)
Suitability Members with a minimum investment timeframe of 10 years who are prepared to accept moderate to high volatility in pursuit of long-term capital growth. Members with a minimum investment timeframe of 10 years who are prepared to accept a high amount of volatility in pursuit of high long-term capital growth.
Objective2
(Beneficiary Account and Accumulation Plan accounts)		 To provide a return of 3.0% p.a. after fees and taxes above the rate of inflation over a 10-year period. To provide a return of 3.25% p.a. after fees and taxes above the rate of inflation over a 10-year period.
Minimum suggested investment timeframe 10 years 10 years
Risk band3 6 – HIGH 6 – HIGH
Estimated number of negative annual returns3 4 to less than 6 over any 20-year period 4 to less than 6 over any 20-year period
More information Balanced Balanced Growth Balanced

What are your options now?

Choose one of the three options below to tell us how you'd like to invest the super in your Accumulation Plan account or Beneficiary Account account.

1. Take no action

If you do nothing, your Accumulation Plan account or Beneficiary Account will be updated so that your account balance will be invested in the Balanced Growth Managed investment option.

 
This means that:

  • Any money in this account will be switched from the Balanced investment option to the Balanced Growth Managed investment option on 22 November 2024, using the unit price for both options effective on 21 November 2024.
  • Any future contributions made to your account will also be invested in the Balanced Growth Managed investment option, until you choose another investment option(s).
2. Keep Balanced as the investment option for this account

You can let us know if you'd like to continue to have the Balanced investment option as your chosen investment option.

You can do this by logging into Members Online and following the prompts on screen.

You will need to do this by 11:00am on Wednesday 20 November 2024.

Alternatively, you can call us any time between now and 11:00am on Wednesday 20 November 2024 and we'll do it for you.

3. Choose a different investment strategy

You can also choose another of our ten investment options, or a mix of investment options.

More information on all our available investment options can be found:

  • on our Investments webpage, and
  • in the Accumulation Plan or Beneficiary Account Product Disclosure Statement (PDS) on our PDS and handbooks webpage.

You can also use the Investment Risk Profiler on our Calculators webpage.

Log into Members Online at esssuper.com.au/members-online and go to the Investments menu to make a choice. Alternatively, you can call us to request we update your investment choice.

Investment option switches will be unavailable between 11:00am Wednesday 20 November and 11:59pm Friday 22 November 2024

Due to the process of implementing our new default option, you will be unable to make any investment switches on this account between these times.

 

We're here to help

For general advice and information, you can book an appointment with one of our Member Education Consultants to learn more about any of our products. If you're seeking personal advice relating to your personal financial situation and/or needs, our qualified Financial Advisers can help.4 To request an appointment, please call us or use our online enquiry form.

If you have any questions, please call us on 1300 650 161 (Emergency Services members) or 1300 655 476 (State Super members) between 8:00am and 5:00pm Monday to Friday, or email us at info@esssuper.com.au

 

1. Using the unit price effective 21 November 2024.

2. The investment objectives are not a promise or guarantee of any particular benefit. They represent a benchmark against which the Board monitors the performance of the investments of the Fund.

3. The standard risk measure is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20-year period. The standard risk measure is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. Members should still ensure they are comfortable with the risks and potential losses associated with their chosen investment option(s).

4. 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.

Emergency Services Superannuation Board (ABN 28 161 296 741) (ESSB), the Trustee of the Emergency Services Superannuation Scheme (ABN 85 894 637 037) (ESSSuper).

Investment returns are not guaranteed. All investments carry risks and past investment performance gives no indication of future performance. Benefits in ESSSuper's Accumulation Plan, Income Streams and Beneficiary Account products are not guaranteed or underwritten by the Victorian Government or ESSSuper, and ESSSuper does not come under the jurisdiction of the Australian Financial Complaints Authority. ESSSuper comes under the jurisdiction of the Victorian Civil and Administrative Tribunal. ESSSuper is an exempt public sector superannuation scheme, and is not regulated by APRA or ASIC, but is governed by Victorian legislation.

The information contained in this document is of a general nature only. It should not be considered as a substitute for reading ESSSuper's Product Disclosure Statement (PDS) that contains detailed information about ESSSuper products, services and features. Before making a decision about an ESSSuper product, you should consider the appropriateness of the product to your personal objectives, financial situation and needs. It may also be beneficial to seek professional advice from a licensed financial planner or adviser. An ESSSuper PDS is available at esssuper.com.au/pds or by calling 1300 650 161.