Voluntary Medical Retirement What you need to know about Voluntary Medical Retirement This factsheet contains information which may be helpful if you are considering applying for a Voluntary Medical Retirement. It explains what possible implications this could have on your QSuper benefit and also where to find more information and advice. What is a Voluntary Medical Retirement? A Voluntary Medical Retirement, or VMR, is a trial scheme introduced by the Queensland Government to support eligible public sector employees who experience illness or injury and seek to voluntarily retire due to their medical condition. For a full explanation of eligibility criteria and the terms and conditions of the VMR, please refer to the Directive 9/14 on the Public Service Commission website, www.psc.qld.gov.au. How will my QSuper benefits be affected? A VMR will normally be treated as a resignation benefit for superannuation purposes. Your age and intention to seek further employment will impact your ability to access your funds and the tax treatment of any withdrawals. Tax implications The tax applied to specific components of your payment depends on your individual circumstances. We recommend you speak to your tax accountant or financial adviser for more information. For general information on tax implications, visit the Australian Taxation Office (ATO) website, www.ato.gov.au, or call 13 28 61. Ongoing Insurance A VMR may affect any future insurance cover. In most cases leaving work on medical grounds will mean that your insurance cover will cease on the date you terminate your employment and you may not be eligible for Death and Total and Permanent Disability cover through your QSuper account in the future. If you have multiple ongoing or future employment with a Queensland Government employer you may still be eligible for cover. Please contact QSuper to find out more. For superannuation purposes a VMR is not related to a redundancy or retrenchment. A VMR does not automatically entitle you to early access of superannuation funds or an insurance claim – if the medical condition meets the required criteria, then additional benefits may be available. For details on requirements and the application process for accessing an ill-health benefit with QSuper, please refer to the product disclosure statement or call our contact centre. What does a VMR package comprise of? A VMR package comprises the following: Accrued recreation leave Accrued long service A severance payment of a minimum four (4) weeks’ pay and a maximum of 52 weeks. This payment may be considered as an Employment Termination Payment, which could have some taxation advantages. Continued over page 1/2 Voluntary Medical Retirement For your employer continued Where can I get advice? If you are a member of the Defined Benefit account, to ensure that your QSuper benefit is calculated correctly, please notify your employer to tick the Other box under the Type of termination section and write VMR when processing the Employer Certificate form. 3 Employee’s termination details Date of termination Type of termination Voluntary cessation (including resignation and retirement) Involuntary cessation (including redundancy, early retirement, retrenchment, contract end and termination of contract2) Final day of permanent employment (employee is changing to casual employment3) Dismissal Deceased Retired ill health Other (e.g. secondment) For more information on the process and eligibility, please speak directly with your employer. If you need help deciding if a VMR is right for you, please visit the ATO website www.ato.gov.au or seek personal financial advice. As a QSuper member you have exclusive access to personal financial advice through QInvest.1 QInvest offers affordable advice you can trust to help you reach your financial goals. To find out more, call QInvest on 1800 643 893 or visit qinvest.com.au. Need more information? We’re committed to making it easier for you to understand your options, so you can feel confident that you are making the right choices for your super. If you have any questions about this factsheet, or your super in general, call us or visit our website for useful information, tools, and calculators. Written enquiries can be addressed to: Extract from the Employer Certificate form. QSuper GPO Box 200 BRISBANE QLD 4001 qsuper.qld.gov.au 1300 360 750 Contact Centres 70 Eagle Street Brisbane and 63 George Street Brisbane Telephone 1300 360 750 (+61 7 3239 1004 if overseas) Monday – Friday 8.30am to 5.00pm AEST Postal address GPO Box 200 Brisbane Qld 4001 Fax 1300 241 602 Website qsuper.qld.gov.au ABN: 60 905 115 063 SFN: 2610 419 41 8002 09/14 FS61 This factsheet and all products are issued by the Board of Trustees of the State Public Sector Superannuation Scheme (ABN 32 125 059 006) (QSuper Board) as trustee for the State Public Sector Superannuation Scheme (ABN 60 905 115 063) (QSuper Fund). The QSuper Board is not licensed to provide financial product advice. Where the term ‘QSuper’ is used it represents the QSuper Board, the QSuper Fund or QSuper Limited (as applicable), unless the context indicates otherwise. This information has been prepared for general purposes only without taking into account your objectives, financial situation, or needs and should not be relied on as legal or taxation advice, nor does it take the place of such advice. Any statements of law or proposals are based on our interpretation of the law or proposals, as at the time of printing. Consider whether the product is appropriate for you and read the PDS before making a decision. You can obtain a PDS at qsuper.qld.gov.au or call us on 1300 360 750. 1 QInvest Limited (ABN 35 063 511 580, AFSL and Australian Credit Licence number 238274) (QInvest) is ultimately owned by the QSuper Board (ABN 32 125 059 006) as trustee for the QSuper Fund (ABN 60 905 115 063), and is a separate legal entity which is responsible for the financial services and credit services it provides. Advice fees apply. 2/2 2/4 © QSuper Board of Trustees 2014