What you need to know

The redundancy process can be difficult and usually involves many important financial decisions. There are many issues regarding redundancy and super that you should consider during this time. We’re here to help you through the process.

Changes to your super

TelstraSuper can be your fund for life. You can take your TelstraSuper account with you when you change jobs, stop working or retire.

When you leave Telstra or a related company, your super's automatically transferred into TelstraSuper Personal Plus. You'll continue to enjoy uninterrupted TelstraSuper membership.

Should you be ready to retire, you have a number of options including opening a RetireAccess account.

The following outlines some of the key things to think about when you are going through a redundancy.

  1. Your insurance cover
  2. Investment choice
  3. Understanding your payment
  4. Accessing your super
  5. Options for your lump sum payment

1. Your insurance cover

When you move to Personal Plus there are some changes to your insurance cover. Your Death and Total & Permanent Disablement will transfer automatically to the Personal Plan but there are some things to consider:

  • Insurance Fees – your employer may have been paying some or all of your insurance premiums. These premiums will now be member paid and deducted from your account for your insurance cover. You can see how much cover you have and the premiums you're paying by logging into your online account.
  • Review your cover amount – when you experience a significant change in your life circumstances it's a good opportunity to review your insurance cover. You can change your cover or cancel it if it's not suitable anymore.

Keep your income protection cover

If you have income protection cover it will also automatically* transfer over to your Personal Plus account. To maintain your cover you need to:

  1. provide details of your new salary and occupation; and
  2. receive an employer contribution from your new employer; and
  3. complete and return the Continuing Income Protection form.

These steps need to happen with 120 days of you leaving your former employer. Where cover is cancelled due to non-receipt of salary or occupation information or SG contribution within 120 days of leaving your former employer, any premiums paid for the 120 days will be refunded. You will need to re-apply for cover after the 120 day period if you wish to obtain cover.

*Subject to the 'At work' requirements and other eligibility criteria and exclusions contained in the Policy. Refer to the TelstraSuper Personal Plus PDS for more information.

Find out more about changes to your insurance cover

2. Investment choice

When you move to Personal Plus your investment options move with you so you will remain invested in the same options you had while you were in the corporate division.

If you're unsure what you're invested in you can review your investments via your online account. You can also make investment changes online.

Review my investments

3. Understanding your payment

When you're made redundant you'll receive information about your redundancy payments from your employer. Your payment will consist of up to three components which will all be taxed differently:

  • genuine redundancy payment (tax free up to a limit). Note if you're over aged 65, you may not be eligible for a genuine redundancy payment and your entire payout may be treated as an ETP.
  • an employment termination payment (ETP), and
  • other redundancy payments such as unused annual and long service leave.

TelstraSuper Financial Planning can help you understand your payout and how to maximise it for the long-term. To speak with an Adviser call 1300 033 166.

Find out how your payment is taxed

4. Accessing your super

Super is designed to help you save for retirement. As a result there are rules around when you can access your super.

Generally, you can access your super:

  • When you turn 65 (even if you’re still working)
  • When you reach preservation age (the age the Government allows access to super) and you permanently retire from the workforce.
  • When you reach preservation age and commence a transition to retirement income stream (this is where you can draw down on your super before you are retired)
  • If you meet another "condition of release" (limited circumstances such as financial hardship or compassionate grounds)

If you're retiring you can pay yourself an income through a RetireAccess income stream.

Find out more about accessing your super

5. Options for your lump sum payment

Your redundancy payment could be one of the biggest payments you'll ever receive. TelstraSuper Financial Planning can help you work out the best long-term strategy for your money. Here are some possible options to consider. 

  • Put it in your bank account
    While it may be tempting to immediately spend some of your redundancy payment on paying off debts or purchasing new items, you should remain as financially flexible as possible while you consider the next steps in your life.
  • Pay off debts
    If you have high levels of debt you may want to consider paying it off with your lump sum payment. It's important to plan for your future. If you pay off your debts with your payment you may not have the money to pay for your day to day expenses.
  • Contribute to super

    You can also put a lump sum payment into your super. If your income in the year falls below a certain amount you may also be eligible for a government co-contribution. There are contribution limits to be aware of before making any larger contributions into your super.

    Boost your super

Other considerations

  • Set a budget
    Preparing a budget will give you an idea of the cash reserves you're likely to need in the coming months. Use our Budget planner and remember to take into account the length of time it may take you to find new employment and include any entitlements to Centrelink payments you may receive.
  • Find out about Centrelink payments
    You may be eligible to receive Centrelink income assistance. Waiting periods may apply, so you should contact Centrelink as soon as possible to get the right information. Contact Centrelink online or call 13 28 50 (Employment Services) or 13 23 00 (Retirement Services).

Get help

One of the benefits of being a member of TelstraSuper is access to general and simple personal advice about your account over the phone at no additional cost. TelstraSuper Financial Planning has a team of experts who can explain your options and help you make important decisions. Some of the things they can help you with are:

  • Understanding your payment and how it's taxed
  • Retirement planning and accessing your super
  • Eligibility for Centrelink support 

To speak with an adviser call 1300 033 166 or request a call by filling in the online form.

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