New investment option and an update to defined benefit employer contribution rates

November 21 2024

Significant event notice

As a member of Victoria's emergency services, you have an ESSS Defined Benefit Fund account and you may also have an Accumulation Plan.

We're writing to inform you about two recent changes that may have an impact on your super account(s).

These changes are:

  1. The introduction of a new investment option, Balanced Growth Managed, which is now available to all ESSSuper members with an Accumulation Plan, a Beneficiary Account, or an Income Stream account.
  2. A recent increase to the employer additional contribution rate from of 1 July 2024, which affects ESSS Defined Benefit Fund members who have already reached their maximum benefit multiple.

1. Our new investment option: Balanced Growth Managed

Your retirement outcomes are always our top priority. For members in a product with member investment choice like the Accumulation Plan, we offer a variety of tailored investment options that are designed to work for you at every stage of your super journey.

That's why we're pleased to introduce our latest investment option: Balanced Growth Managed.

This diversified, actively managed 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 3.00% per year over ten years, Balanced Growth Managed aims for an average return of 6.25% per year during that period.1

Balanced Growth Managed: Investment profile summary
Suitability 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 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
Risk band3 6 – HIGH
Estimated number of negative annual returns3 4 to less than 6 over any 20-year period

You can view the complete investment profile for this option on our Balanced Growth Managed web page.

Who is Balanced Growth Managed suitable for?

Balanced Growth Managed is diversified, which is one of the best strategies to lower your risk and generate more stable returns. Plus, it's actively managed, which allows us to strategically adjust assets and respond quickly to market changes.

Opting for super products with higher average annual returns and low fees can significantly boost your super over time. However, it's important to remember that investment markets can fluctuate, so returns can be positive or negative and are not guaranteed.

Balanced Growth Managed could be a good option for you if:

  • you want a mix of growth assets (including Australian and international shares) and lower-risk defensive assets for stability
  • you're looking for a product that aims for higher returns (3.25% above the rate of inflation over ten years4), and
  • you have longer investment horizons (10 years or more).
How do I change my investment strategy?

If you have an Accumulation Plan, Beneficiary Account or Income Stream account, you can change your investment strategy at any time. You can move all or part of your super to any of our investment products.

To change your investments:

How do I know which investment strategy is right for me?

Unsure which investment options are right for you? Take a look at the Investment Risk Profiler on the Calculators webpage.

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

For general information, you can book a virtual 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 financial situation or needs, our qualified Financial Advisers can help.5

To request an appointment, please call us or use our online enquiry form.

2. Defined Benefit member employer contributions

If you're a member of the ESSS Defined Benefit Fund and reach your maximum benefit, you become eligible to receive additional contributions from your employer.

Those additional contributions are based on a percentage of your salary and paid into your ESSSuper Accumulation Plan account.

From 1 July 2024, the employer additional contribution rate into the Accumulation Plan will increase from 8% to 9%. This rate will increase to 12% by 1 July 2026.

Employer additional contributions paid into the Accumulation Plan will count towards your concessional contributions cap. For further information about contribution caps, please refer to our Tax and superweb page.

  Financial year
2022-23 2023-24 2024-25 2025-26 2026-27
Rate 6% 8% 9% 11% 12%

(If you're yet to reach your maximum benefit multiple, this won't affect you just yet. We'll advise you and your employer in writing when you reach your maximum benefit multiple and become eligible for additional employer contributions to your Accumulation Plan.)

We're here to help

You can also find a copy of this significant event notice in your Members Online inbox.

The latest Product Disclosure Statements for both the ESSSuper Defined Benefit Fund and the Accumulation Plan are now available on our PDS and handbooks web page.

If you have any questions, please contact us on 1300 650 161 between 8:00am and 5:00pm Monday to Friday, or email us at info@esssuper.com.au

Warm regards

Duncan Winton
Group Executive, Strategy, Brand & Insights

 

1. Investment returns cannot be guaranteed as investment markets can be volatile. As a consequence, returns can be positive or negative. Past investment performance is not a reliable indicator of future performance.

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 does not guarantee any particular rate of return, the performance of any investment or the repayment of capital from any investment. Investment is subject to investment risk and other risks. Past performance is not an indication of future performance.

5. 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.