Voluntary Medical Retirement factsheet

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.
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Voluntary Medical Retirement
For your employer
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)
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
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
Written enquiries can be addressed to:
Extract from the Employer Certificate form.
GPO Box 200
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
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.
© QSuper Board of Trustees 2014