Minimum drawdowns reverting to pre-pandemic rates

ESSSuper - 23 Jun 2023

Are you a member with a Working Income Stream or Retirement Income Stream account who relies on your regular payments from your super for your income?

If so, it's important to know that the temporary 50% reduction to the minimum drawdown rate, put in place by the Federal Government on 1 July 2020 to assist pensioners through the COVID-19 pandemic, will end on 30 June 2023.

Please note: These minimum drawdown rates do not apply to defined benefit pensions.

What this means for you

If you've currently chosen the minimum rate at which you can receive your regular income stream payments, your drawdown amounts will be recalculated automatically to the new rate from 1 July 2023 - you don't need to take any action.

If you have a nominated drawdown rate, you will only be affected if the rate you have nominated is below the new minimum. In this case, your pension payments will increase to the new minimum.

Members that have selected the maximum drawdown rate for their Working Income Stream will not be affected.

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

Benefits in ESSSuper's Income Stream 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.

The information contained in this article is of a general nature only. It should not be considered as a substitute for reading the relevant ESSSuper 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.