As a former Defined Benefit member there will be changes to your super account that you need to be aware of. If you have any questions we’re here to help you ensure you get the most from your new account. The following information is for Division 2 members. For Defined Benefit members in other divisions please give us a call on 1300 033 166 for details on how your benefit transfer to Personal Plus will work.
Your benefit that will be automatically transferred to Personal Plus will be calculated on the final day of your employment at Telstra.
If you need help working out your benefit or help with any other aspects of your membership, TelstraSuper Financial Planning are here to help. Or you can download a copy of the Division 2 Super Guide for details.
The details about your benefit calculation will be sent to you after you leave your job.
Your Defined Benefit will be invested in the Cash option for 90 days after you transfer to Personal Plus unless you notify us otherwise. This will give you time to decide how you want your benefit to be invested. If you don't make a decision it will then be moved into the relevant MySuper option (this is the default investment option based on your age).
If you have a Voluntary Accumulation Account (VAA), this account will also be transferred to Personal Plus and your investment options will remain the same.
Transfer of Death & TPD insurance cover
When we receive notification that you are leaving your Telstra Group or Telstra-approved employer, your account balance and any insurance cover you have will be transferred into our portable, flexible product TelstraSuper Personal Plus. Upon the date of transfer into TelstraSuper Personal Plus, default Death & TPD Cover held in your TelstraSuper Division 2 account will be retained in your new TelstraSuper Personal Plus arrangement^, however new premium rates will apply. You will need to pay for this insurance cover and the premium will be based on a weekly unitised rate. This cover will decrease as you get older.
The Death and Total & Permanent Disablement insurance that is transferred to TelstraSuper Personal Plus will be based on your prospective benefit (this is the difference between your benefit when you are made redundant and your benefit if you had retired at age 60). For example, if you’re 50 and your current benefit is $400,000 and your benefit at age 60 would be $600,000 - your insurance cover in TelstraSuper Personal Plus would be $200,000.
Any voluntary Death and TPD cover that is transferred will be based on the applicable TelstraSuper Personal Plus voluntary cover rates. Premiums for this insurance will be deducted from your account quarterly.
How much insurance you require depends on your individual circumstances. For details on how your insurance benefit is calculated and the premiums payable, see the TelstraSuper Personal Plus Insurance Guide.
The insurance you have when you move to TelstraSuper Personal Plus will change, making it a good time to review your cover and how much you need. Premiums for your insurance cover will be deducted quarterly in arrears from your super account. You’ll receive 30 days extended Default Death & TPD insurance cover after you leave your Telstra Group or Telstra-approved employer. This cover generally ceases 30 days after ceasing employment or immediately upon withdrawal of your entire benefit from TelstraSuper.
See the TelstraSuper Personal Plus Insurance Guide for full details.^ Subject to the ‘active employment’ test contained in the relevant insurance policy.
Applying for Income Protection Cover
If you're in permanent employment as a full time, part time employee or eligible contractor, you may be able to apply for Income Protection cover. Eligible members** can apply online by logging into their online account, or you can complete an Insurance Telephone Request Application form. Our insurer will then call you. This phone call can take up to 30-45 minutes, depending on your responses to the medical, health and lifestyle questions. You will be notified about the outcome of your application in writing.**Members must have an account that allows insurance cover to be applied under a Policy and must be registered users of SuperOnline. Members must also have a valid email address and reside in Australia.
TelstraSuper Financial Planning is here to help. For example, they can work through the different investment options with you over the phone at no additional cost. You can speak to an Adviser by calling 1300 033 166 or booking online.