Bill aims to modernise superannuation for emergency service workers

The Superannuation Legislation Amendment Bill 2025 seeks to make several changes in relation to how members can manage their superannuation contributions and, in particular, makes significant changes to the composition of the Emergency Services Superannuation Board. 

In his second reading speech Finance Minister Danny Pearson outlined the purpose of the bill.  

‘To ensure consistency in the application of the 90 per cent superable salary policy for members of the Emergency Services Superannuation Scheme (ESSS), assist members in managing their superannuation and personal finances by enabling more frequent contribution rate changes, better support non-member spouses of members who die to apply to become members of ESSPLAN during a time of grief, and make changes to the membership of the Emergency Services Superannuation Board for efficiency and appropriateness in light of the current membership arrangements,’ he said. 

The changes would allow members to make more frequent changes to contribution rates, extend the period of a spouse or widow to become a member of the ESSS from three to 12 months and legislate the 90 per cent superable salary policy for Executive Officers and other contract employees.  

Evelyn MP Bridget Vallence said the opposition supported these changes.  

‘These amendments will allow members to better manage their superannuation and personal finances, so this is a positive change, and it will give members more control of the management of their superannuation,’ she said.  

Under the proposed changes the board composition would move to five board members nominated by the minister and three being directly elected by members of the scheme. So one being elected by Victoria Police members, one being elected by Ambulance Victoria members and one being elected by Fire Rescue Victoria and Department of Energy, Environment and Climate Action members, with the remaining two State Superannuation Fund (SSF) members being appointed by declared unions.

Ms Vallence said this was the most troubling aspect of the bill.

‘SSF board representatives are currently directly elected by active members of the SSF, and as the minister himself noted in his second-reading speech, this representation ensures the board can make decisions informed by the valuable lived experience of elected members,’ she said.

Greenvale MP Iwan Walters said he wanted to ‘acknowledge the immense contribution of those for whom this scheme exists’. 

‘Our public sector workers in Victoria, emergency services workers and teachers in large part. As a former teacher and a member of one of the inheritor schemes that the ESSS is part of, I am deeply appreciative of the work that they do every day,’ he said.

Ovens Valley MP Tim McCurdy argued the method of selecting SSF representatives was unfair.

‘The proposed changes will take away the democratic rights of members to decide who is on the board and handling their retirement savings,’ he said.  

The bill will reduce the number of members on the board representing SSF members from three to two.

Albert Park MP Nina Taylor said this clause was important and reflected the declining number of SSF members.  

‘We know that the overall number of SSF members is declining simply because for that part of the scheme they are approaching retirement, so we do have to futureproof the scheme,’ she said. 

‘Emergency Services and State Super was created almost 100 years ago in recognition of people who safeguard the safety, health and wellbeing of Victorians.’

Narracan MP Wayne Farnham agreed the number of members on the board should be reduced but said the ideal number should be odd.  

‘An ideal board always has an odd number, so you get a decision – a 9 or 11 is actually right,’ he said.  

The bill has passed the Legislative Assembly and will continue to be debated in the Legislative Council. Read the Assembly debate, including speeches by seven MPs and speeches by 13 MPs.