Revised Scheme

December 21 2024

Thinking about retirement?

Contact us to discuss your options today.

Contact us

No one knows your Revised Scheme better than we do.

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" resignation option.

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.

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 the Revised Scheme Handbook on our PDS and handbooks page.

Your end benefit is calculated using a formula which takes into account a number of elements, including your:

  • Salary
  • Age
  • Period of service, and
  • Full- or part-time employment status.

Grow your super - see the strategies that can make the difference

Disability benefits

Revised Scheme members who are under age 60 always have disability cover. After applying for a benefit, ESSSuper will determine whether you're eligible for:

  • A temporary pension (with payments that don't reduce your retirement benefit)
  • A permanent disability pension, or
  • Commuting a permanent disability pension into a full lump sum benefit.

About temporary pensions

If you're eligible, a temporary pension may be payable:

  • If it appears you're likely to substantially recover from your injury, disease, or infirmity
  • For a maximum period of up to two years (as long as you don't finish employment and medical evidence supports continuation of the benefit).

ESSSuper will make a decision on a disability claim after you've attended at least two independent medical examinations with Board-approved doctors.

To learn more or complete an application form, please refer to our Claiming a disability benefit (defined benefit) fact sheet, available in the 'Looking after your loved ones' section of our Publications web page.

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 insurance*, consolidating your super**, 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

The "54/11" resignation option

As a member of the Revised Scheme, you also have access to the "54/11" resignation option. This option allows you to elect to resign just prior to your 55th birthday (at age 54 and 11 months) 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.

What is the "54/11" resignation option?

The "54/11" resignation option is a resignation benefit paid to an ESSSuper Revised Scheme member who resigns prior to their minimum retirement age of 55 (at age 54 and 11 months). Resigning before age 55 allows you to receive a refund of your contributions and accrued earnings plus a pension from the age of 55*. Because you're resigning from your job – not retiring from the work force – you can receive the pension and continue employment.

* Please note that your application is required to be submitted prior to age 55 to commence the pension from age 55. If the application is received after your 55th birthday, the pension will start from the date the application is received or from age 60, whichever is earliest.

Features of the "54/11" resignation option

The features of the "54/11" resignation option are:

  • You receive a lump sum refund of contributions and earnings, and a pension from age 55.
  • It provides you with a lifetime pension which is a source of regular fortnightly income just like your current salary. Benefits of the pension include:
    • It's indexed to Consumer Price Index (CPI) twice per year – so it keeps up with the cost of living
    • You cannot out-live this pension – it doesn't run out
    • Your partner gets 2/3rds of the pension if you die
    • Payments begin once you turn age 55*
    • It's tax free after turning age 60 up to prescribed limits.**

It is important to note that once you leave the Revised Scheme you cannot rejoin it. However, if you continue employment, your new employer must pay superannuation guarantee contributions to a super fund of your choice or your stapled super fund, if you do not choose a super fund.

* Please note that your application is required to be submitted prior to age 55 to commence the pension from age 55. If the application is received after your 55th birthday, the pension will start from the date the application is received or from age 60, whichever is earliest.

** A defined benefit income cap of $106,250 is currently applied to limit the amount of Defined Benefit Lifetime Pension income received tax free.

Who is the "54/11" resignation option available to?

The "54/11" resignation option is available to members of the Revised Scheme. As no two individual's circumstances are the same, the "54/11" resignation option may not be the best option for everyone. For this reason we encourage you to call us to arrange an appointment for an individual general advice consultation with one of our Member Education Consultants before making this decision.

As you need to resign from your job in order to claim the "54/11" benefit, it is a decision that should not be rushed into.

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 can help you understand your options in detail, and if you need, we can refer you to our Financial Advisers†, who can advise you on which option is best for your personal situation.

We also run regular webinars which can help you to understand your options in more detail.

Be in the know: Find out more about our advice† and education services today

Working part-time in the transition to retirement

As you approach retirement, it can be helpful to make changes at work to ease the transition.

One way to do this is by reducing your hours or changing to a more flexible role. To make the transition gradual, you can consider:

  • Talking to your employer about your options, e.g. purchasing extra leave
  • Discussing your needs with your family, and
  • Meeting with a Financial Advisor† to make a plan.

If your super is in one of our State Super funds, reducing your hours is unlikely to have an impact on the Final Average Salary used to calculate your retirement benefit, although it will impact your benefits by reducing the rate at which your super accumulates. You can find out more in the relevant handbook available on our PDS and handbooks web page.

Planning for your future can be a daunting task, but you're not alone. Contact us for expert information and financial advice about your super from one of our Financial Advisers.† You may also benefit from meeting with a Member Education Consultant for general advice about your ESSSuper account, such as what happens if you leave an operational role.

On the other hand, if you want to increase your take-home pay before retiring, you could:

  • Work extra hours at your current job
  • Look for additional work outside of your current job (which may be subject to approval by your current employer),  or
  • Ask for a pay rise.

However, before taking any action to increase your take-home pay, it's important to consider:

  • Talking to your employer about overtime options
  • Checking your conditions of employment
  • How much tax you will need to pay on any extra income
  • The impact on your work/life balance.

Accessing your superannuation while working

If you'd like to reduce your work hours without decreasing your income, accessing your super while working could be an option. You may be able to access a transition to retirement pension such as our Working Income Stream to do this.

To access a Working Income Stream you need to:

  • Have some or all of your super in an accumulation account (not a defined benefit), and
  • Have reached the superannuation preservation age.

It's crucial to be aware that drawing on your superannuation while still working will mean having less money when you retire.

You can learn more about transitioning to retirement on the Government's Moneysmart website.

Thinking about retirement?

When you decide to retire from the Revised Scheme you have three options to consider:

  1. You can receive a lifetime pension, which is a source of regular fortnightly income just like your current salary. Benefits of the pension include:
    • It's indexed to CPI twice per year – so it keeps up with the cost of living
    • You cannot out-live this pension – it doesn't run out
    • Your partner gets 2/3rds of the pension if you die.
  2. You can elect to convert some of your fortnightly pension to a lump sum, or
  3. You can elect to convert all of your fortnightly pension to a lump sum*.

* Please note that your application to convert your pension is required to be submitted by no later than 3 months after your retirement date. If you do not convert your pension at that time, you will have another opportunity at age 65, at which time your application to convert your pension is required to be submitted within 3 months prior to age 65.

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 can help you understand your options in detail, and if you need, we can refer you to our Financial Advisers†, who can advise you on which option is best for your personal situation.

We also run regular webinars which can help you to understand your options in more detail.

Be in the know: Find out more about our advice† and education services today

Exempt officers

Exempt officers are members who cease active membership of the Revised Scheme without having to terminate their employment with their current employer. They may be entitled to deferred benefits without terminating their employment.

Before exempting out of the Revised Scheme, you first need to:

  • Confirm with your employer whether you're eligible to become an exempt officer.
  • Receive exempt officer information/estimates from ESSSuper.

The formal eligibility requirements vary. Please refer to the Revised Scheme Handbook on our PDS and handbooks page or contact us for more details.

 

Emergency Services Superannuation Board ABN 28 161 296 741 (ESSB), the Trustee of the Emergency Services Superannuation Scheme ABN 85 894 637 037 (ESSSuper). The information contained on this web page 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 on our PDS and handbooks page or by contacting us.

* Insurance cover is subject to eligibility criteria and other terms and conditions in the Policy. Please read the Product Disclosure Statement relevant to your particular fund, available from ESSSuper, for more information.

** You should check any relevant exit fees you may incur, or any insurance arrangements that may be forfeited, or any other effects this transfer may have on your benefits, before rolling your money into our fund.

† 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.