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.
- Your insurance cover
- Investment choice
- Understanding your payment
- Accessing your super
- Options for your lump sum payment
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:
- provide details of your new salary and occupation; and
- receive an employer contribution from your new employer; and
- 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.
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.
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.
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.
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
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).
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:
To speak with an adviser call 1300 033 166 or request a call by filling in the online form.
- Your super
- If you're working
If you're taking a break
- check your Centrelink entitlements and any waiting periods
- use our retirement income projector to see how a career break could affect your super balance
- review your insurance
- look into eligibility for spouse contributions and government co-contributions
If you're retiring
- if you're about to turn 65, you may want to see if you can bring your redundancy forward before your birthday because of possible tax advantages
- use our retirement income projector to review an estimate of your possible final account balance
- think about how you will fund your retirement
- look into eligibility for Centrelink entitlements such as the Age Pension
- review your income options (including a RetireAccess income stream)
Other financial considerations
- review your payout – do you understand the different components of the payment?
- set up a budget
- assess your finances – do you have debts to pay off? What's your long term financial plan?