ESSSuper Income Streams Product Disclosure Statement

 
ESSSuper Income Streams Product Disclosure Statement
ESSSuper Income Streams
Product Disclosure Statement
For all ESSSuper members

Proudly serving our members

Issued 19 October 2021
Issued by: Emergency Services Superannuation Board ABN 28 161 296 741 (Board)
as Trustee of the Emergency Services Superannuation Scheme ABN 85 894 637 037 (Scheme)
ESSSuper Income Streams Product Disclosure Statement
We’re one of Australia’s largest super funds with more than
128,000 members and over $35 billion in assets as at 1 July
2021. We provide pre and post retirement solutions to Victorian
emergency services and state government employees.

“We’re proud to be the dedicated, not-for-profit super fund
  serving Victorian emergency services and state employees.”

  Important notice                                              About this Product
  The information provided in this Product Disclosure           Disclosure Statement
  Statement (PDS) is general information only and does not
                                                                This is the PDS for ESSSuper’s Working Income Stream
  take into account your financial situation and needs. You
                                                                and Retirement Income Stream.
  should consider the appropriateness of this information
  to your circumstances, carefully read this PDS (and any       It will help you understand the benefits and conditions of
  additional documents referred to in this PDS) and obtain      a Working Income Stream and Retirement Income Stream.
  financial advice before making any decision about
  whether to acquire the product. The Board is not licensed     The benefits in ESSSuper’s Income Streams are not
  to provide financial product advice concerning an             guaranteed or underwritten by the Victorian Government
  interest in ESSSuper. This PDS is only available to persons   or the Emergency Services Superannuation Board.
  receiving it in Australia (electronically or otherwise).

  The information in this PDS is up to date as at the issue
  date and may change from time to time. Changes that
  are not materially adverse are available by visiting our
  website or contacting us as indicated on page 3. On
  request a paper copy will be given to a person without
  charge.
ESSSuper Income Streams Product Disclosure Statement
How to contact                                            Contents
ESSSuper                                                  Introduction4
Our Member Service Centre can assist you with all         About ESSSuper’s Income Streams                         4
enquiries regarding your membership. If you want to       How an Income Stream works                              6
discuss any aspect of your membership, or you want to     Investing in an ESSSuper Income Stream                  8
make an appointment for an individual consultation, you
can call us between 8.00 am and 5.00 pm Monday to         Benefits10
Friday.                                                   Payment of benefits 10

                                                          Investment choice                                      17
ESSSuper’s contact details are:
                                                          Investment principles                                  17
 Website             esssuper.com.au                      Different types of investment                          17
                                                          What are the risks?                                    18
 Email               info@esssuper.com.au
                                                          Things to consider when selecting investment options   20
 Telephone           1300 650 161                         Need help with your super?                             21
                     (for emergency services members)
                                                          Investment options                                     22
                     1300 655 476
                     (for state super members)            Other important investment information                 28

                                                          Taxation31
 Postal address      GPO Box 1974
                     Melbourne Victoria 3001              Taxation of benefits 32

 Street address      Level 16, 140 William Street         Fees and other costs                                   35
                     Melbourne Victoria 3000              Additional explanation of fees and costs               38
                                                          Additional fees and costs                              40
                                                          Defined fees and costs                                 41

                                                          Other information                                      44
                                                          Complaints handling                                    45
                                                          Keeping you informed                                   46

                                                          Glossary47

                                                          How to open an account                                 49
                                                          ESSSuper Income Stream checklist                       49

                                                          Forms50

                                                                                                                   3
ESSSuper Income Streams Product Disclosure Statement
Introduction

We’re one of Australia’s biggest super funds with more           A Working Income Stream can be used to transition to
than 128,000 members and over $35 billion in assets as           retirement in a number of ways. For example, you may be
at 1 July 2021. We’re proud to be the dedicated,                 able to:
not-for- profit super fund serving Victorian emergency
                                                                 {{switch to part-time work and receive ESSSuper
services and state employees.
                                                                    Working Income Stream payments so you don’t have
                                                                    to reduce your income, or
About ESSSuper’s                                                 {{continue your current working hours and get the

Income Streams                                                      tax benefits of salary sacrificing into your super fund
                                                                    (subject to contribution caps). So, although you are
                                                                    drawing down from part of your super with your
ESSSuper offers two income stream options. The Working
                                                                    Working Income Stream, you are topping up as you go.
Income Stream is designed for current or former Victorian
emergency services employees, State Super members                To be eligible you must have reached your preservation
or their spouses (including de facto couples) in the             age but not have retired. There are restrictions on the
Transitioning to retirement lifestage (have met preservation     amount of income you can withdraw (see page 10 of
age (but are under 65) that are still employed (full time or     this PDS) and it is not possible to withdraw a lump sum
part time)) who wish to supplement their income.                 amount except in limited circumstances. When you meet
                                                                 a condition of release (e.g. permanently retire) you can
The Retirement Income Stream is designed for current or
                                                                 convert your Working Income Stream to a Retirement
former Victorian emergency services employees, State Super
                                                                 Income Stream which will allow lump sum withdrawals.
members or their spouses (including de facto couples) in
                                                                 These conditions are set out in the ‘Commutations’ section
the retired life stage (no longer working) that wish to draw a
                                                                 on page 11.
regular income.
                                                                 ESSSuper recommends that you speak with a licensed
For more information about who these products are
                                                                 financial adviser before deciding whether a transition to
appropriate for (target markets), and any conditions around
                                                                 retirement strategy using an ESSSuper Working Income
how these products can be distributed to members, please
                                                                 Stream is appropriate for you.
visit esssuper.com.au/pds
In this PDS, you will find important information about these     Retirement Income Stream
options to help you determine whether these income
streams meet your retirement, or transition to retirement        ESSSuper’s Retirement Income Stream can provide a
needs.                                                           regular income for ESSSuper members who have attained
                                                                 their preservation age and permanently retired from the
                                                                 workforce, or have reached age 65 or have met another
Working Income Stream
                                                                 condition of release. Members with an unrestricted non
ESSSuper’s Working Income Stream can provide a regular           preserved benefit can also use that benefit to acquire
income to eligible ESSSuper members who have reached             a Retirement Income Stream. It enables members to
their preservation age but wish to continue to work either       continue to invest some or all of their superannuation
in a full or part-time capacity.                                 benefit with ESSSuper and continue to benefit from the
If you are an ESSSuper defined benefit member and wish           concessional tax treatment for retirement savings.
to commence a Working Income Stream, please contact us           ESSSuper’s Retirement Income Stream has been designed
to better understand your options and entitlements.              to mirror the terms of an Account Based Pension as set
ESSSuper’s Working Income Stream has been designed               out in the Superannuation Industry (Supervision) Regulations
to mirror the terms of a Transition to Retirement Account        1994. This type of product can only be acquired if you have
Based Pension as set out in the Superannuation Industry          satisfied a condition of release.
(Supervision) Regulations 1994.

4
ESSSuper Income Streams Product Disclosure Statement
The benefits and risks of investing                                 {{your choice of fortnightly, monthly, quarterly, six-
in an Income Stream                                                    monthly or annual payments made direct to your
                                                                       nominated bank account, with the ability to increase
Benefits                                                               in line with inflation
ESSSuper’s Income Streams are investment vehicles which             {{a choice of investment strategies and the ability
enable you to convert your superannuation benefit into                 to change your investment choice to suit your
a regular income stream and defer any lump sum tax that                personal circumstances
may be payable*. Subject to maximum and minimum                     {{the ability to make lump sum withdrawals (called
limits set by superannuation law, you can nominate the                 commutations) at any time using Members Online
amount of income you want to receive each year.                        account access
* Members transferring their ‘untaxed’ optional benefit from the   {{the ability to nominate a reversionary beneficiary to
   Beneficiary Account will have tax deducted from that benefit        receive income payments in the event of your death
   before it is transferred.
                                                                    {{the option to make either a binding beneficiary
The Working Income Stream is an easy and convenient way                nomination or a non-binding beneficiary nomination
to receive a regular income payment while you continue to              as to who you wish to receive your lump sum benefit in
work. It offers:                                                       the event of your death (if no reversionary beneficiary
{{a low-cost flexible income stream                                    income payment is nominated)
{{your choice of fortnightly, monthly, quarterly, six-              {{the option to stop your payments and withdraw your

    monthly or annual payments made direct to your                     investment as a lump sum or roll it over to another
    nominated bank account, with the ability to increase               Account Based Pension or superannuation fund.
    in line with inflation                                          Risks
{{a choice of investment strategies and the ability to
                                                                    The Income Streams may not provide an income for the
    change your investment choice to suit your personal
                                                                    rest of your life. Payments will only continue to be made
    circumstances
                                                                    until your account balance has been exhausted.
{{the option to nominate a ‘reversionary beneficiary’ to
    receive income payments in the event of your death              You also need to be aware that your account balance is
                                                                    determined by the amount invested, the investment returns
{{the option to make either a binding beneficiary
                                                                    earned by your investment choice options (including any
    nomination or a non-binding beneficiary nomination
                                                                    negative returns), the Income Stream’s fees and taxes, and
    as to who you wish to receive your lump sum benefit in
                                                                    how much income has already been paid to you.
    the event of your death (if no reversionary beneficiary
    income payment is nominated)                                    Superannuation is a long term investment and a person
{{the option to roll over to a retirement income stream             who leaves the fund shortly after joining may get back less
    pension that falls under the definition of a Transition to      than the amount paid in because of the level of investment
    Retirement Account Based Pension                                returns and the effect of fees, costs and taxes.

{{the option to stop your payments and roll your                    The benefits in the ESSSuper Income Streams are not
    investment over to the ESSSuper Accumulation Plan or            guaranteed or underwritten by the Victorian Government
    another superannuation fund.                                    or the Board.

The Retirement Income Stream is an easy and convenient              For more information about investment risk, refer to pages
way to convert your superannuation lump sum into a tax              18-19.
effective regular income in retirement. It offers:
{{a low-cost, flexible and tax-effective income stream
    in retirement

                                                                                                                                 5
ESSSuper Income Streams Product Disclosure Statement
Getting financial advice                                            The diagrams below show how a Working Income Stream
                                                                    and a Retirement Income Stream might operate:
If you need personal financial advice that is tailored to your
individual circumstances, you should seek advice from a             Working Income Stream
licensed financial adviser.
ESSSuper has an arrangement with Link Advice Pty Ltd
(Australian Financial Services Licence (AFSL) No. 258145)                        ROLLOVER
                                                                           SUPERANNUATION              INVESTMENT
(Link Advice) under which Link Advice and its authorised                          SAVINGS              RETURNS
                                                                                                       Positive
representatives may provide you with fee-for-service
(commission free) financial product advice.
This means you only pay for the time it takes to provide
you with the advice or to complete a financial plan.
Under this arrangement, Link Advice authorises certain
qualified ESSSuper financial advisers to provide financial
                                                                                               $
product advice to ESSSuper members. Although these
financial advisers are employed by ESSSuper, the advice                                      YOUR INCOME
will be provided under Link Advice’s AFSL and Link Advice                                  STREAM ACCOUNT
is responsible for the financial advice services provided                                                   REGULAR INCOME
                                                                            INVESTMENT                      PAYMENTS TO YOUR
to you. ESSSuper pays Link Advice a fee for this service.                      RETURNS                      BANK ACCOUNT
                                                                                Negative
However, neither the Board, ESSSuper nor the Victorian                                                      FEES AND
                                                                             15% TAX ON                     COSTS
Government guarantee or endorse any advice given by                  INVESTMENT RETURNS
Link Advice or its authorised representatives.
A qualified financial adviser can provide financial advice
                                                                                               −
specific to your personal needs, goals and financial
situation. They can also work with you to develop a tailored
plan to help you reach your retirement goals.                       Retirement Income Stream

For more information about our financial advice arrangements,
please visit our website at esssuper.com.au/advice or call our
                                                                                ROLLOVER
Member Service Centre.                                                    SUPERANNUATION               INVESTMENT
                                                                                 SAVINGS               RETURNS
                                                                                                       Positive

How an Income Stream works
An Income Stream allows you to convert your superannuation
savings into a flexible income tailored to your lifestyle needs.
To invest in a Working Income Stream or Retirement Income
                                                                                               $
Stream, you must invest a minimum superannuation benefit
of $50,000*. For a Working Income Stream you must have                                       YOUR INCOME
reached your preservation age. In the case of the Retirement                               STREAM ACCOUNT
Income Stream, you must have permanently retired from the                                                   REGULAR INCOME
                                                                            INVESTMENT                      PAYMENTS TO YOUR
workforce after reaching your preservation age, reached age                    RETURNS                      BANK ACCOUNT
                                                                                Negative
65 or met another condition of release, and any benefit you                                                 LUMP SUM
                                                                              FEES AND                      WITHDRAWALS
wish to use for this product must not be preserved.                              COSTS                      (COMMUTATIONS)
                                                                                                            AS NEEDED
* Special consideration may be given to accepting deposits below
   $50,000 in exceptional circumstances.
6
Preservation age
                                                                         WARNING:
Generally, you can only withdraw your preserved benefit                  Closing and restarting an existing Income
when you reach your preservation age as outlined below                   Stream account may affect your Centrelink or
and permanently retire from the workforce.                               Department of Veteran’s Affairs (DVA) payments.
                                                                         Contact Centrelink, DVA or seek advice from
 Date of birth                           Preservation age                a financial adviser before closing or restarting
                                                                         any existing Income Stream account.
 Before 1/7/1960                                55
 1/7/1960 – 30/6/1961                           56
 1/7/1961 – 30/6/1962                           57
 1/7/1962 – 30/6/1963                           58               Transitioning from a Working Income
 1/7/1963 – 30/6/1964                           59               Stream to a Retirement Income Stream
 1/7/1964 or after                              60               When you reach age 65, we will automatically transfer you
                                                                 from a Working Income Stream to a Retirement Income
Generally, you meet a condition of release when:                 Stream effective from the first day of the month following
{{you permanently retire from the workforce on or after          your 65th birthday.
   your preservation age                                         If you meet any other conditions of release, you will need
{{you have reached your preservation age and you                 to notify us. If we receive your notification by close of
   commence a transition to retirement income stream             business on the last business day before the 21st day of
{{you cease employment on or after age 60                        the month, you will be switched from a Working Income
{{you reach age 65                                               Stream to a Retirement Income Stream. This will be
{{you become permanently incapacitated at any age
                                                                 effective from the first day of the month following receipt
                                                                 of a valid condition of release. For example, if we receive
{{you suffer from a terminal medical condition
                                                                 notification of a valid condition of release by 20 June, you
{{you meet tightly restricted compassionate grounds or
                                                                 will be switched to a Retirement Income Stream effective
   financial hardship, or                                        1 July.
{{you die.
                                                                 However, if we receive notification after the 20th day of
Payments are made regularly into your nominated bank             the month, you will be switched from a Working Income
account. Each year you can nominate the amount of                Stream to a Retirement Income Stream effective from
income you wish to receive, as long as it is within the limits   the first day of the month following the next month. For
set by superannuation law (refer to Income Payments on           example, if we receive notification of a valid condition of
pages 10 to 12).                                                 release on 23 June, you will be switched to a Retirement
                                                                 Income Stream effective 1 August.
         Note:
         If you have an unrestricted non preserved               The balance that is transferred to the Retirement Income
         component you may make lump sum                         Stream will count towards your personal transfer balance
         withdrawals from your Working Income Stream             cap. For more information on this, see the ‘Taxation’ section
         account using Members Online account access             on page 31.
         at any time up to the value of that unrestricted
         non preserved component.

                                                                                                                                7
Investing in an ESSSuper                                                 this document) or you can apply to add to and consolidate
                                                                         your Income Stream account at any time using the Restart
Income Stream                                                            my Income Stream account form (ES173) available from
                                                                         our website at esssuper.com.au/forms or by calling our
To invest in an ESSSuper Income Stream, you can complete                 Member Service Centre.
the Income Stream Application Form (ES176) online by                     Before completing these forms you should carefully read
logging into your Members Online account at                              this Product Disclosure Statement.
esssuper.com.au/login. Alternatively, you can complete
the form accompanying this document and post it to us.
This is in addition to any forms you may need to complete                Eligibility to invest
to transfer or rollover your benefit from another ESSSuper               The Income Streams are for current and former Victorian
account.
                                                                         emergency services employees, state super members
Once an Income Stream commences, legislation prevents                    and their spouses.
ESSSuper from accepting further deposits into that
Income Stream.
                                                                         Working Income Stream
If you would like to add personal after-tax contributions* to
your ESSSuper Income Stream at the time of commencing                    The ESSSuper Working Income Stream accepts transfers
or restarting your account, personal contributions must be               and rollovers of lump sum superannuation benefits
paid into an Accumulation Plan account first. These funds                (including accumulation products as well as lump sum
can then be rolled over into an income stream.                           deferred benefits). In this instance you do not have to
                                                                         have retired from the workforce, however, you must have
*The Government has set a cap on the amount of non-
  concessional contributions you can make in a financial year before
                                                                         reached your preservation age (55 or over depending on
  additional tax applies. Please refer to the How Super is Taxed guide   your date of birth) - see the table on page 7. You must also
  (AP.4) in the Accumulation Plan PDS available on our website at        be under age 65 to acquire a Working Income Stream.
  esssuper.com.au/pds, for further information.                          The minimum investment to start your ESSSuper Working
                                                                         Income Stream account is $50,000*.
If you are transferring or rolling over from another fund,
you can login to your Members Online account at
esssuper.com.au/login. Alternatively, you can complete the               Retirement Income Stream
Transfer Your Super form (ES104) which is also available from
                                                                         The ESSSuper Retirement Income Stream can be acquired
our website at esssuper.com.au/forms
                                                                         using rollovers of the unrestricted non preserved portion of a
If you have advised us on the Income Stream Application Form             lump sum superannuation benefit. The minimum investment
that you are rolling over from more than one other fund, we              to start your ESSSuper Retirement Income Stream account is
will put your money in a holding account for up to 30 days,              $50,000*. A transfer balance cap applies to the total amount
or until all expected rollovers have been received, whichever
                                                                         of super an individual can transfer into a Retirement Income
occurs first. If we haven’t received all expected rollovers
                                                                         Stream. Every individual will have their own personal transfer
within the 30-day period, your funds will be transferred to an
Accumulation Plan account (please refer to the Accumulation              balance cap of between $1.6 and $1.7 million, depending
Plan Product Disclosure Statement available from our website             on how much super they have transferred from their pre-
at esssuper.com.au/pds).                                                 retirement phase super account and/or transition to retirement
                                                                         income stream into a retirement phase income stream before
Once all rollovers have been received, a new Income Stream
                                                                         1 July 2021. The amount of the cap will be indexed periodically
account will be created. All monies kept in the holding
                                                                         in $100,000 increments, in line with CPI.
account will accrue interest and be charged fees as if
they are invested in the Accumulation Plan, from the date                Retirement Income Stream account balances exceeding
received to the date the holding account is exited and funds             a member’s personal transfer balance cap may be subject to
are transferred to either an Income Stream account or an                 an excess transfer balance tax. Any defined benefit pension
Accumulation Plan account.                                               you receive is included in the transfer balance cap. If you
You can commence a separate ESSSuper Income Stream                       commence a retirement income stream below the transfer
using the Income Stream Application Form (accompanying                   balance cap, and the value of your balance subsequently

8
grows due to investment earnings, the amount in excess              Income Stream account your money will be invested in an
of the cap will not be subject to excess transfer balance tax.      Accumulation Plan account while we process your request.
Please see Transfer balance cap under the Taxation section of       Accumulation Plan fees will apply and if you have not made
this PDS for more details on your transfer balance cap.             an investment choice, your money will be invested in the
                                                                    default option, the Growth investment option. We will
The ATO will calculate notional earnings on any amount
                                                                    automatically open an Accumulation Plan account for you
in excess of your personal transfer balance cap in a
                                                                    if you don’t already have one when you open your Income
Retirement Income Stream in the retirement phase.
                                                                    Stream account. Any amounts you have in the Accumulation
The notional earnings on the excess amount will be liable
                                                                    Plan account will incur fees. Any contributions into your
for excess transfer balance tax of 15% until the excess
                                                                    Accumulation Plan account will be invested in the default
amount is removed.
                                                                    investment option for that account or in line with the existing
Note: The ATO may issue commutation instructions authorising
                                                                    investment nomination for that account if you made one.
and requiring ESSSuper to transfer excess funds in a Retirement
Income Stream to an Accumulation Plan account, on your behalf.      *Special consideration may be given to accepting deposits below
                                                                       $50,000 in exceptional circumstances.
* Special consideration may be given to accepting deposits below
   $50,000 in exceptional circumstances.
                                                                             Note:
Additional investments                                                       If rolling over money from another superannuation
                                                                             fund, your other fund(s) may cancel insurance
You can transfer benefits from other super funds to a new                    cover as a result of transferring or rolling over
Income Stream account at any time. Once an Income                            your balance. You should make enquiries with
Stream has started, no further payments can be made to                       those funds and seek appropriate financial advice
                                                                             before proceeding.
that Income Stream account. While it is possible to acquire
multiple Income Streams this may not be ideal because of
potential Centrelink implications, multiple account keeping
fees, multiple bank transactions and ease of maintenance.           Cooling-off
If you subsequently decide to transfer benefits from other          If you apply to receive an ESSSuper Income Stream, you
super funds, you can start a new Income Stream using                have 14 days to decide whether the Income Stream meets
those transferred benefits and the balance of your existing         your needs.
Income Stream account using the Restart my Income
Stream account form (ES173), available from our website             The 14 days will begin either from the time you receive
at esssuper.com.au/forms or by calling our Member                   confirmation of starting your Income Stream, by way of a
Service Centre.                                                     confirmation letter, or at the end of the 5th day following
                                                                    the day on which you became a member of the Income
A minimum restart amount of $50,000* applies. If you are            Stream (i.e. the day ESSSuper received your transfer or
rolling over from other funds to restart your income stream,        rollover), whichever is the earlier.
we will put your money in a holding account for up to 30
days, or until all expected rollovers have been received,           This 14 day period is called the cooling-off period. If you do
whichever occurs first. If we haven’t received all expected         cancel your application during the cooling-off period, any
rollovers within the 30-day period, your funds will be              Government taxes and charges paid by ESSSuper on your
transferred to an Accumulation Plan account (please refer           behalf will be deducted. Your account will also be adjusted
to the Accumulation Plan Product Disclosure Statement).             to reflect any investment earnings (positive or negative)
We will use the combined money to start a new Income                and fees incurred during the period.
Stream account in your name.                                        Any request to cancel your application must be made in
It’s important to note that when opening an Income                  writing and emailed to us at info@esssuper.com.au or
Stream account or making a contribution to your ESSSuper            posted to us at ESSSuper, GPO Box 1974, Melbourne VIC
Accumulation Plan account prior to restarting your                  3001.

                                                                                                                                   9
Benefits

Payment of benefits                                            For example, if you hold an unrestricted non-preserved
                                                               benefit and a restricted non-preserved benefit, any
                                                               income payments will be drawn from your unrestricted
Working Income Stream                                          non-preserved benefit before being drawn from your
                                                               restricted non-preserved benefit.
Income payments
                                                               Payments made fortnightly will be credited to your nominated
Usually you can elect pension payments between 4% and          bank account each second Thursday. Monthly payments will
10% of your account balance per financial year. These limits   be paid by the 28th day of each month. Quarterly payments
are mandated by superannuation law.                            will be paid by the 28th day of March, June, September and
However, the Federal Government has temporarily reduced        December. Six-monthly payments will be paid by the 28th day
superannuation minimum drawdown requirements for               of June and December and annual payments will be paid by
account-based pensions by 50% for the 2020, 2021 and           the 28th day of June. If the payment date falls on a weekend
2022 financial years in its response to Coronavirus.           or public holiday, it will be paid on the last business day prior,
                                                               subject to processing by your financial institution.
Up until 30 June 2022, you can elect pension payments
between 2% and 10% of your account balance for your            Example of minimum and maximum payment
Working Income Stream. The temporary minimum of 2%             Peter has $300,000 invested in ESSSuper’s Working Income
will be revised up automatically from 2% to 4% from            Stream on 1 July. He is aged 58.
1 July 2022.
                                                                The minimum amount for Peter’s payments is:
This measure will benefit members of the ESSSuper
Working Income Stream by reducing the required                  Balance (or lump sum)                                 $300,000
                                                                multiplied by                                                x
minimum pension payment from your investment                    Minimum percentage                                        2%*
option(s) to fund income stream payments.                       equals (for the financial year)                       = $6,000
Payments are calculated based on your account balance as        The maximum amount for Peter’s payments is:
at 1 July each year or the date your Working Income Stream      Balance (or lump sum)                                 $300,000
commences. If you establish an account after 1 July, the        multiplied by                                                x
                                                                Maximum percentage                                        10%
minimum payment is proportioned for the remaining days
                                                                equals (for the financial year)                      = $30,000
in the financial year if payments are fortnightly, monthly,
quarterly or six-monthly. Although annual payments are         *Temporary minimum in response to Coronavirus.
not normally proportioned you may request that your first      Unless you nominate the investment options from
annual payment be proportioned.                                which your income payments are to be made, they will
Payments can be made fortnightly, monthly, quarterly,          be paid in order from the lowest to highest risk investment
six-monthly or annually and are made directly to your          options in which you have invested your Income Stream
nominated bank account.                                        (i.e. Cash, Defensive, Conservative, Balanced, Growth,
                                                               Basic Growth, Ethically Minded, High Growth, Shares Only).
Income payments made from your Working Income
                                                               Nominations can be made on the Income Stream application
Stream will be based on the available components of
                                                               form (ES176) when you first apply for your Income Stream, or
your benefit. Income payments will be drawn from your
                                                               any time thereafter by completing the Change of Investment
account in the following prescribed order, until that
                                                               Order for Income Stream Payments form (E149) available from
component is exhausted, at which time it will proceed to
                                                               our website at essuper.com.au/forms
be drawn from the next component:
                                                               There is no fixed term for payment of your Working Income
1. unrestricted non-preserved benefits
                                                               Stream. While you have an account, your income will
2. restricted non-preserved benefits
                                                               continue to be paid until your account balance has been
3. preserved benefits.
                                                               paid out in full and consequently may not provide an
                                                               income for the rest of your life.
10
Yearly updating of limits                                         Retirement Income Stream
Each year on 1 July, we recalculate your minimum pension
limit. Your new limit is calculated after all your payments for   Income payments
the past financial year have been deducted and investment         You must elect a pension payment which is at least the
earnings are applied.                                             minimum percentage amount required according to your
We will send you advice of your new limit and you can             age (see table overleaf for your minimum percentage
choose whether to adjust the amount of your payments or           payment per financial year). Payments are calculated based
you can choose to do nothing and your payments will stay          on your account balance as at 1 July each year or the date
the same subject to meeting the minimum and maximum               your Retirement Income Stream commences. Where you
payment requirements.                                             establish an account after 1 July, the minimum payment is
                                                                  proportioned for the remaining days in the financial year if
No amount nominated                                               payments are fortnightly, monthly, quarterly or six-monthly.
If you do not nominate the amount you wish to receive each        Although annual payments are not normally proportioned you
year, payments will be made fortnightly and will be equal to      may request that your first annual payment be proportioned.
the greater of either the amount you nominated in your most       Payments can be made fortnightly, monthly, quarterly,
recent instruction or the minimum pension amount payable.         six-monthly or annually and are made directly to your
                                                                  nominated bank account.
Deferring payments
                                                                  Payments made fortnightly will be credited to your account
If you open an Income Stream account after 31 May
                                                                  each second Thursday. Monthly payments will be paid by
in a particular financial year, you can elect to defer the
                                                                  the 28th day of each month. Quarterly payments will be paid
commencement of your payments until the following
                                                                  by the 28th day of March, June, September and December.
financial year.
                                                                  Six-monthly payments will be paid by the 28th day of June
Commutations                                                      and December and annual payments will be paid by the
                                                                  28th day of June. If the payment day falls on a weekend or
Generally, you cannot make any commutations (lump sum
                                                                  public holiday, it will be paid on the business day prior.
withdrawals) from your Working Income Stream unless you
have an unrestricted non preserved component. Maximum             Unless you nominate the investment options from which
limits also apply.                                                your income payments are to be made, they will be paid
                                                                  from the lowest to highest risk investment options in
The only way your Working Income Stream account can
                                                                  which you have invested your Income Stream (i.e. Cash,
be accessed in full is if you satisfy one of the following
                                                                  Defensive, Conservative, Balanced, Growth, Basic Growth,
conditions of release:
                                                                  Ethically Minded, High Growth, Shares Only). Nominations
{{you permanently retire from the workforce on or after           can be made on the Income Stream application form (ES176)
   your preservation age                                          when you first apply for your Income Stream, or any time
{{you cease employment on or after age 60                         thereafter by completing the Change of Investment Order
{{you reach age 65                                                for Income Stream Payments form (E149) available from our
{{you become permanently incapacitated at any age
                                                                  website at esssuper.com.au/forms

{{you are suffering from a terminal medical condition, or         There is no fixed term for payment of your Retirement
{{you die.                                                        Income Stream. Your income will continue to be paid until
                                                                  your account balance has been paid out in full , or you
You may be able to access a limited portion of your funds         transfer your pension to another superannuation product
if you meet strict criteria under financial hardship or           or fund. Consequently, a Retirement Income Stream may
compassionate grounds.                                            not provide an income for the rest of your life.

                                                                                                                            11
Retirement Income Stream minimum payment amount              Age                  Previous minimum New reduced rates
Federal Government regulations set a minimum for the                               drawdown rates  until 30 June 2022
amount of income you can receive each year, depending                                    (%)               (%)
on your age. You can choose any amount (up to your           Under 65                          4                2*
account balance) above the minimum and change
                                                             65-74                             5                2.5
the amount at any time.
                                                             75-79                             6                 3
The minimum pension amount can be calculated by
multiplying your account balance as at 1 July each year      80-84                             7                3.5
by the minimum payment percentage for your age as            85-89                             9                4.5
listed below.                                                90-94                             11               5.5
The minimum annual payment amount may be paid only           95 or more                        14                7
via regular income payments – lump sum commutations
do not count towards minimum annual pension payments.       * This minimum also applies to payments made from the Working
                                                               Income Stream.
The Federal Government has temporarily reduced
superannuation minimum drawdown requirements for            Members upon joining or at any time can elect the new
account-based pensions by 50% for the 2020, 2021 and        minimum drawdown rates, however, the new minimum
2022 financial years in its response to Coronavirus.        drawdown rates will revert back to the previous minimum
                                                            levels automatically from 1 July 2022.
Up until 30 June 2022, you can elect minimum pension
payments from 2% of your account balance for your           If you are an existing member and you wish to elect the
Retirement Income Stream. The temporary minimum of          new minimum drawdown rate, please complete the
2% will be revised up automatically from 2% to 4% from      Income Stream Payment Change Form (E137) available online
1 July 2022.                                                at esssuper.com.au/forms under the ‘Change or update
                                                            your details’ section. The completed form can be posted
This measure will benefit members of the ESSSuper           back to us or emailed to info@esssuper.com.au
Retirement Income Stream by reducing the required
minimum pension payment from your investment                Example as per temporary minimum payment
option(s) to fund income stream payments.                   Peter has $300,000 invested in ESSSuper’s Retirement
All income streams members must elect to receive a          Income Stream. He is aged 68 and therefore has a
pension payment amount which is at least the minimum        temporary minimum drawdown rate of 2.5%.
percentage amount required according to the age bracket
                                                             The minimum amount for Peter’s payments is:
you fall into. The new minimum drawdown rates for all age
brackets are shown in the following table.                   Balance (or lump sum)                                    $300,000
                                                             multiplied by                                                   x
                                                             Minimum percentage                                          2.5%
                                                             equals (for the financial year)                          = $7,500

                                                            This means Peter must receive a Retirement Income Stream
                                                            payment of at least $7,500 for the financial year.
                                                            Note: Subject to the balance in your account, there is no
                                                            maximum amount you must withdraw each year.

12
Yearly updating of limits                                         The following rules apply to commutations:
Each year on 1 July, we recalculate your minimum pension          {{they can only be made payable to you
limit. Your new limit is calculated after all your payments for   {{withdrawal requests must be in writing and directed
the past financial year have been deducted and investment            to ESSSuper or submitted online by logging into your
earnings are applied.                                                Members Online account at esssuper.com.au/login
We will send you advice of your new limit and you can choose      {{the pro rata minimum pension amount must be paid
whether to adjust the amount of your payments or you can             before the commutation.
choose to do nothing and your payments will stay the same
subject to meeting the minimum payment requirement.               Please note that lump sum tax may be payable on
                                                                  commutations (refer to Taxation on page 31 for details).
If your current payment amount is set at the current year’s
minimum limit, your payments will adjust to your new limit.       Terminal medical condition
You can nominate to have your fixed dollar income payments        You are able to access your benefit as a tax free lump sum if
indexed in line with the Consumer Price Index (CPI).              you are suffering from a terminal medical condition. In order
                                                                  to release your benefits, ESSSuper requires medical reports
No amount nominated                                               from two practitioners (one of whom is a relevant specialist)
If you do not nominate the amount you wish to receive             that certify that you are likely to die within 24 months.
each year, payments will be made fortnightly and will be          If you need to make a claim, please call the Member
equal to the greater of either the amount you nominated           Service Centre.
in your most recent instruction or the minimum pension
amount payable relative to your age.                              Death benefits

Deferring payments                                                You are required to nominate what happens to your
                                                                  account balance should you die before your benefit is
If you open an Income Stream account after 31 May in a
                                                                  paid out in full. You have two options and we suggest you
financial year, you can elect to defer the commencement
                                                                  consider obtaining advice to assist you in deciding which
of your payments until the following financial year.
                                                                  option best suits your needs.
Commutations
                                                                  1. Reversionary beneficiary option
You can make full or partial commutations (lump sum
                                                                  Under this option, you can nominate a spouse (as defined
withdrawals) from your Retirement Income Stream at
                                                                  in the Fund’s rules – see below) to whom your pension
any time, until your balance is paid out in full. Partial
                                                                  payments will revert on your death. Selecting this option
commutations will be treated as lump sum super
                                                                  allows ESSSuper to continue regular payments to your
payments and will be assessable for tax purposes.
                                                                  spouse until your account balance has been paid out in full.
If you make a full commutation and close your account
                                                                  The minimum reversionary pension amount for your spouse
your membership will cease and you will not be entitled
                                                                  is calculated by multiplying your account balance at the date
to any further payments. Once you have no remaining
                                                                  you die by the minimum pension limits for your spouse’s age.
accounts with ESSSuper, you will not be eligible to open
another account.

                                                                                                                                 13
The Federal Government has temporarily reduced                   If no valid binding nomination was held, your benefit
superannuation minimum drawdown requirements for                 would be paid at the Board’s discretion to one or more
account-based pensions by 50% for the 2020, 2021 and             of your dependants and/or your estate. If you had made
2022 financial years in its response to Coronavirus.             a non-binding nomination, the Board would consider
                                                                 that nomination – but would not be bound by it – when
Up until 30 June 2022, you can elect minimum pension
                                                                 making its decision.
payments from 2% of your account balance for a
reversionary pension. The temporary minimum of 2% will
                                                                         Note:
be revised up automatically from 2% to 4% from 1 July 2022.
                                                                         The latest beneficiary nomination you submit will
                                                                         be used by the Board in the event of your death.
 Example
 When Jack dies his income stream account balance is
 $200,000 and his spouse Anne is the nominated reversionary
 beneficiary. Anne is aged 77 and therefore has a minimum        Definition of Spouse
 drawdown rate of 3%.
                                                                 Your spouse includes:
 The minimum amount for Anne’s payment is:
                                                                 {{a person to whom you are legally married
 Balance (or lump sum)                               $200,000
                                                                 {{a person, whether of the same or opposite sex, with
 multiplied by                                              x
 Minimum percentage                                       3%        whom you are not legally married, but lives with you on
 equals (for the financial year)                     = $6,000       a genuine domestic basis as a couple
                                                                 {{a person, whether of the same or opposite sex, with
The following conditions apply to reversionary income streams:
                                                                    whom you are in a relationship that is registered under
{{the Board is bound by your nomination                             an Australian State or Territory law.
{{payments will continue to be paid to your nominated
     spouse until your account balance is paid out in full
                                                                 Definition of Dependant
{{your nominated spouse will have the option to convert          Under the Emergency Services Superannuation Act 1986
     the reversionary income stream to a lump sum at any time    (ESS Act), Dependant is defined as someone who is:
{{if your nominated spouse dies before the reversionary          {{your spouse
     income stream is paid out in full, the balance will be
                                                                 {{a child of yours (or your spouse), or
     paid to their estate, and
                                                                 {{any person who, in the opinion of the Board was wholly
{{to amend a reversionary benefit you must complete
                                                                    or partially dependent or had a legal right to look to
     the Reversionary Beneficiary Nomination form (ES168)
                                                                    you for financial support.
     available from our website at esssuper.com.au/forms
     or by calling our Member Service Centre.                    If you have no Dependants, your benefit will be paid to
                                                                 your estate.
To nominate a reversionary beneficiary you should
complete Option 2 of the Beneficiary Details section of the      Non-binding nomination
Income Stream application form (ES176).
                                                                 If you make a non-binding nomination, the Board will take
                                                                 it into account when deciding who to pay your benefit to.
2. Lump sum option
                                                                 The Board will, subject to its discretion, pay the benefit to
Under this option, your benefit will be paid to one or
                                                                 your Dependants and/or your estate depending on the
more of your Dependants (as defined in the Fund’s rules
                                                                 circumstances at the time of death.
– see overleaf ) or your estate.
                                                                 To nominate your non-binding beneficiary, you should
If at the time of your death the Board had accepted a
                                                                 complete the relevant section of the Income Stream
binding nomination that remained valid, your benefit
                                                                 application form (ES176) (accompanying this document) or
would be paid in accordance with that nomination.

14
log into your Members Online account at                        No nomination
esssuper.com.au/login and complete it online.
                                                               If, in the event of your death, no nomination has been
Please note that your non-binding nomination is a guide        received, the Board will distribute your benefit to your
only and the Board has absolute discretion in determining      dependant(s) and/or your legal personal representative in
who should receive your benefit and in what proportion,        the proportions determined by the Board in its discretion,
including whether some or all of your benefit should           subject to the governing rules of the Fund.
be paid to your estate. If you wish to add to, or change
your beneficiaries at any time, you can advise ESSSuper        Proof of identity
by logging into your Members Online account or by
completing the Non-binding Death Benefit Nomination form       Under the Anti-Money Laundering and Counter Terrorism
(E107) available from our website at                           Financing Act 2006 (AML/CTF), superannuation funds are
esssuper.com.au/forms                                          required to identify, monitor and mitigate risks relating
                                                               to the laundering of money or the financing of terrorism.
Binding death benefit nomination                               Accordingly, you may be required to provide proof of
A binding death benefit nomination allows you to               your identity.
nominate who you wish to receive your benefit in the           ESSSuper is required to report suspicious transactions to
event of your death. You may nominate a Dependant              AUSTRAC, the regulator responsible for AML/CTF regulations.
and/or your estate. If your nomination remains valid the       As part of this reporting process, ESSSuper may need to
Board is bound to act according to your instructions and       disclose a member’s personal information to AUSTRAC. We
cannot vary its decision, even to allow for any changes in     are prohibited from telling you when such reports are made.
your circumstances from the time of your nomination to
                                                               For more information about the valid forms of identification,
the time of your death.
                                                               refer to the applicable Withdrawal form (ES163 or ES164)
However, if at the date of your death any person nominated     available from our website at esssuper.com.au/forms
by you has ceased to be a Dependant, the entire nomination
will be invalid and the Board will decide in its absolute
discretion who will receive your benefit and in what
proportion, including whether some or all of your benefit
should be paid to your estate. Your binding nomination would
then be considered a non-binding nomination by the Board.
Binding nominations have a fixed term of three years
and override any nomination you have previously made.
It is therefore essential that you review your binding
nomination not only as your circumstances change but
also at least every three years.
To make a binding death benefit nomination, you should
complete the Binding Death Benefit Nomination form (ES106).
If you wish to revoke or change your binding death
benefit nomination at any time, you can advise ESSSuper
in writing by completing the Binding Death Benefit
Nomination form (ES106) available from our website at
esssuper.com.au/forms or by calling our Member Service
Centre.

                                                                                                                           15
Investment choice

                                                               Sustainability
Investment principles
                                                               We consider both the opportunities and risks of an
Our aim is to help every member achieve a comfortable          environmental, social and governance nature relevant to
and financially secure life in retirement through consistent   our investment decisions.
investment performance that delivers competitive
risk-adjusted returns over the long term.                      The above principles guide our investment strategy and
                                                               approach.
                                                               We strive to offer a range of flexible investment options so
                                                               that you can choose investment solutions appropriate to
                                                               your needs.

                           Value
                                                               Different types of investment
                                                               Each of the investment options invests in one or more
              Balance              Sustainable                 asset classes. There are three main asset classes:
                                                               {{shares
                                                               {{defensive fixed income, and
                         Flexible                              {{cash.

                                                               The returns on shares are mainly derived from capital gains
                                                               and income from dividends. Shares are classified as growth
                                                               assets. Growth assets generally offer the potential for
                                                               greatest long term capital appreciation (when compared
                                                               with defensive assets), but the returns can fluctuate, with
                                                               negative returns possible from time to time.
                                                               Defensive fixed income and cash are primarily classified as
Our approach is guided by our investment principles:
                                                               defensive assets. These assets mainly derive returns from
                                                               interest. Defensive assets generally offer the potential of
Balance
                                                               lower long term capital appreciation (when compared to
Our investment style aims to protect against short term        growth assets), but the returns are generally more stable and
volatility and focuses on achieving superior results over      less likely to fluctuate from one year to the next. Cash returns
the medium to long term.                                       are usually positive, but negative returns are possible.

Value
We seek to simplify investment structures without
compromising returns, only incurring higher costs where
returns can be maximised to provide value for money.

                                                                                                                             17
Diversification                                                                      Liquidity risk and unlisted assets
The Income Stream’s investment options also invest                                   Liquidity risk can arise when a fund has difficulty selling all
in other asset classes that are expected to behave                                   or part of its assets in a short time frame.
differently to the traditional assets classes such as shares,
                                                                                     Asset classes which are more prone to liquidity risk than
defensive fixed income and cash. These asset classes
                                                                                     others are unlisted property and infrastructure given they are
include infrastructure, property, multi-asset strategies and
                                                                                     mostly not publicly traded on a recognised exchange. They
alternative strategies. These asset classes may have both
                                                                                     are either directly traded between buyers and sellers, or are
growth and defensive characteristics but more importantly
                                                                                     bought or sold through pooled investments, overseen by an
provide diversification to the traditional asset classes that
                                                                                     investment manager or responsible entity.
each of the Income Stream’s investment options invest in.
                                                                                     The types of unlisted assets in which ESSSuper invests
                                                                                     may include property, infrastructure, private equity,
What are the risks?                                                                  commodities, timber, credit and other alternative strategies.

With every investment, there are risks. Generally, the higher                        Assets which are unlisted form an important part of ESSSuper’s
the level of risk, the higher the potential return.                                  investment diversification strategy. Different investment
                                                                                     options will have varying levels of exposure to unlisted assets
Investment risk                                                                      (e.g. the High Growth option may have up to 60% in unlisted
                                                                                     property and infrastructure assets whereas the Defensive
Investment risk refers to the likelihood that the value of an                        option could have up to 20%).
investment will rise and fall within a given period. Some asset
classes are considered riskier than others.

The graph below shows how a $10,000 investment in each of the major asset class markets would have grown over
the past 20 years to 30 April 2021.

$60,000
           —   Cash (Bloomberg AusBond Bank Index)
           —   Australian Fixed Interest (Bloomberg AusBond Composite)
$50,000    —   Australian Shares (S&P ASX 300)
           —   International Fixed Interest (Bloomberg Barclays Global Aggregate)
           —   International Shares (MSCI All Country World)
$40,000

$30,000

$20,000

$10,000

                                                                                                                                        Source: Factset
     0
          Apr 01       Apr 03          Apr 05          Apr 07           Apr 09      Apr 11      Apr 13       Apr 15      Apr 17       Apr 19      Apr 21

Note: The above values have not been adjusted for fees and taxes. Please note that past performance is not an indication of future performance.

18
Whilst these investments have the potential to lower              Currency risk
volatility and enhance returns over the longer term,
they also carry risks in terms of liquidity, counterparty         When ESSSuper invests in assets in other countries, any
and valuation risk.                                               change in the value of foreign currencies relative to the
                                                                  Australian dollar will usually result in a change to the
ESSSuper’s strategy to manage these risks includes:               valuation of those investments in Australian dollar terms.
{{monitoring of the underlying asset liquidity in all
   investment options                                             Security specific risk
{{regular monitoring of cash flow requirements to                 When an individual company or asset fails (e.g. through
   ensure ESSSuper holds sufficient liquid assets to meet         fraud or bankruptcy), the value of an underlying
   expenses and income stream and benefit payments                investment in that company or asset can fall sharply.
{{diversifying investments across multiple investment
   managers to ensure diversification of securities; and          Sovereign risk
{{monitoring of counterparty and other risks.
                                                                  The risk that a government will either default on its
The majority of ESSSuper’s underlying unlisted assets are         obligations, change the terms of repayment or impose
valued quarterly by independent experts.                          controls on the return of capital.

Counterparty risk                                                 Environmental, social and governance
Counterparty risk arises when the counterparty (e.g. the          (ESG) risk
responsible entity or issuer of a security) defaults on some      ESG risks include a broad range of factors which can impact
or all of its contractual obligations.                            the Fund’s short term investment performance as well as
                                                                  long term sustainability. For more information, refer to our
Valuation risk                                                    Responsible Investment Policy available on our website at
                                                                  esssuper.com.au/responsibleinvestment
Valuation risk is the risk that assets are not valued according
to generally accepted market practices.
                                                                  Derivatives risk
Market risk                                                       Derivatives are used to reduce risk (hedging) or gain
                                                                  exposure to other types of investments when appropriate.
Each asset class can be affected by economic, technological,
political or legal conditions within its own markets. Changes     Risks associated with derivatives include:
in investor or consumer sentiment as a result of market
                                                                  {{the value of the derivative failing to move in line with
conditions can affect the value of investments, which may
                                                                     the underlying assets
rise and fall.
                                                                  {{the risk that an investor may not be able to meet
                                                                     payment obligations as they arise; and
Interest rate risk
                                                                  {{the risk that a counterparty may not meet its
Changes in interest rates can have an impact on the                  obligations under a derivatives contract.
investment returns of different asset classes (this
                                                                  ESSSuper uses derivatives such as futures and forward
particularly applies to defensive fixed income, credit and
                                                                  contracts to efficiently gain exposure to markets and
other fixed interest investments).
                                                                  to hedge investment positions or foreign currency
                                                                  positions (designed to protect the Australian dollar value
Legislative risk
                                                                  of offshore assets). Our investment managers may also
The risk that changes in laws or regulation could have            invest in derivatives in order to assist with the effective
a significant impact on the value of certain investments.         management and protection of the Income Stream’s assets.

                                                                                                                               19
The effect of inflation
Things to consider when
selecting investment options                                    Consider how much your basic expenses like food, medical
                                                                bills, clothing and travel have increased in price over the
                                                                last ten years. When choosing how to invest your super, it’s
The importance of diversification                               important that, subject to your risk tolerance, you consider
                                                                the likelihood of the option you choose providing sufficient
A common way to reduce investment risk is through
                                                                returns above inflation. Otherwise, it may be difficult to fund
diversification across different types of investments, the
                                                                your retirement goals as inflation will erode the purchasing
purpose of which is to spread risk. The more diversification,
                                                                power of your retirement income, meaning that over time
the less reliance on the performance of any one investment
                                                                you will need more money to purchase the same goods.
because each asset class or underlying security performs
well at different times. When one asset is not performing       The return above the inflation rate is called the real
well, you may have several others that are performing           rate of return on your investment. For example, if your
better to balance the overall return.                           investment earns 8% and inflation is 3%, then your real
                                                                rate of return is 5%.
Diversification normally involves allocating in certain
proportions:
                                                                The effect of compound earnings
{{within asset classes, (e.g. across a wide range of shares
     in different industries and companies in Australia and     Over time, small differences in the value of your benefit
     overseas), and/or                                          can turn into large differences through the power of
                                                                compounding. Compounding is the process whereby
{{across asset classes (i.e. shares, defensive fixed income,
                                                                your money earns returns (positive or negative) on top of
     cash and other asset classes).
                                                                returns already invested. By choosing the right investment
Applying this approach can reduce the impact of negative        options for your super, you can harness the potential of
returns on your investment option. The investment options       compound earnings.
we offer adopt varying levels of diversification. You can
choose to invest in one investment option or choose a           Investment options with ESSSuper
combination of multiple investment options to diversify
your investment.                                                Investment choice is available to all Income Stream
                                                                members. It allows you to tailor your super to meet your
Your time horizon                                               individual goals.
                                                                ESSSuper offers a choice of nine investment options:
When choosing how to invest, you need to carefully
consider how much risk you are prepared to accept in the
                                                                Standard Options
short term to achieve your long term objectives. The length
                                                                {{Shares Only
of time you have until you retire, or in retirement is one of
the major considerations in determining your tolerance to       {{High Growth

risk. Investors with a longer time horizon may be prepared      {{Growth (default option)
to invest more aggressively than those with a shorter time      {{Balanced
horizon. As an investor’s time horizon shortens, they may       {{Conservative
want to invest more conservatively.
                                                                {{Defensive
                                                                {{Cash

20
Alternative Options
{{Basic Growth
                                                                 Need help with your super?
{{Ethically Minded                                               {{visit esssuper.com.au for tips, tools and calculators
                                                                 {{book your place at our super webinars
Standard Options                                                    at esssuper.com.au/webinars
These are all ‘pre-mixed’ options and offer a ‘range of risk     {{call our Member Service Centre on:

profiles’ from defensive to growth. The Standard Options            1300 650 161 (for emergency services members)
represent the core options that ESSSuper offers and are             1300 655 476 (for state super members)
underpinned by our investment approach.                          {{call us to arrange an individual consultation with
                                                                    a Member Education Consultant
Alternative Options                                              {{if you want personal financial advice tailored to your
                                                                    individual circumstances, we can arrange a referral
The Alternative Options are designed to complement
                                                                    to a licensed financial adviser that charges on a fee-
ESSSuper’s standard investment offering, giving members
                                                                    for-service basis (commission free). ESSSuper has an
greater flexibility and choice. The options are designed for
                                                                    arrangement with Link Advice Pty Ltd for Link Advice
members looking to prioritise a particular characteristic that
                                                                    and its authorised representatives to provide members
is important to them when selecting their investment mix.
                                                                    with financial advice under Link Advice’s Australian
You can choose a single option or a combination of                  Financial Services Licence (No. 258145).
options. If you don’t make a choice, your benefit and
investment earnings will be invested in the default
investment option, Growth.
                                                                   ESSSuper has an arrangement with Link Advice Pty
If you are unsure which investment option is best for you,         Ltd to provide financial advice to ESSSuper members.
have a look at the Investment Risk Profiler on our website at      ESSSuper pays Link Advice a fee for this service. Neither
esssuper.com.au/calculators                                        the Board, nor the Victorian Government, guarantee or
                                                                   endorse any recommendations made by Link Advice
A financial adviser can help you understand investment             or its authorised representatives, or are responsible for
risk and help you assess which investment options are              the advice and actions of Link Advice or its authorised
appropriate for your specific requirements and your risk           representatives.
tolerance. For more information, please visit our website
at esssuper.com.au/advice or call our Member Service
Centre.

                                                                                                                               21
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