The redundancy process can be difficult and usually involves many important financial decisions. There are many important issues regarding redundancy and super that you should consider during this time.
What will happen to my super once I leave my employer?
Your employer-sponsored super
If your employer contributions are being paid to Media Super, then your existing account will be unaffected by your redundancy; investment options, fees and charges will remain the same. Your insurance cover may change, however.
If your super contributions are currently being directed to a corporate master trust, it is likely that your entire super balance will be transferred into a retail or personal plan run by the same administrator as the corporate plan. If this is the case, consider the features of the new plan and ensure that you are not penalised by higher fees, lower investment performance or reduced insurance cover.
Ensure that you stay in control of your retirement savings. Investing your super in a low-cost, high performing fund can significantly affect your retirement lifestyle.
A genuine redundancy payment is calculated by your employer and is usually based on your salary and years of service. It may comprise three parts:
- tax-free amount
- employment termination payment
- unused leave and unused long service leave payments.
Please see the Redundancy fact sheet for more details.
For more information, please read the Redundancy fact sheet. If you have any questions or would like to speak to a Financial Planner, please call the Helpline on 1800 640 886.