Changes to minimum drawdown rate for Working Income Stream and Retirement Income Stream

ESSSuper - 09 Apr 2020

Changes to minimum drawdown rate for Working Income Stream and Retirement Income Stream

As part of the Government’s economic response to coronavirus, the Government is temporarily reducing superannuation minimum drawdown requirements for account-based pensions by 50 per cent for the 2020 and 2021 financial years. This measure will benefit members of the ESSSuper Working Income Stream and Retirement Income Stream by reducing the required minimum pension payment from your investment option(s) to fund income stream payments.  

What does this change mean for Working Income Stream and Retirement Income Stream members with a minimum drawdown rate?

All income streams members must elect to receive a pension payment amount which is at least the minimum percentage amount required according to the age bracket you fall into. The minimum drawdown rate for your age bracket has been reduced by 50% for the 2020 and 2021 financial years. The new reduced drawdown rates are shown in the following table below. 

If you elect the new minimum drawdown rate, it may mean that you will no longer receive further income payments in FY19/20 if you have already reached the new minimum drawdown threshold for this financial year. This will be effective from the next income stream payment following the receipt of your request. Your request to reduce your payments to the new minimum will also apply next financial year (2021) unless you contact ESSSuper to change your pension drawdown amount.

How can I change my drawdown rate?

To change your drawdown rate, update your regular payment schedule through the Pension / Pension details menu in Members Online.

We’re here to help

We're proud to be the dedicated, not-for-profit super fund serving Victorian emergency services and state employees. With exclusive products and services, we exist to provide better retirement outcomes for members like you.

We aim to help every member achieve a comfortable and financially secure life in retirement through consistent investment performance that delivers above-average returns over the long term.

If you have any questions, please email info@esssuper.com.au with ‘MSC’ at the start of the subject line, or alternatively please call our Member Service Centre on 1300 650 161 and we’ll be happy to help.

Emergency Services Superannuation Board ABN 28 161 296 741 the Trustee of the Emergency Services Superannuation Scheme ABN 85 894 637 037 (ESSSuper). 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 or by calling 1300 650 161.