Taking control

Voluntary redundancy/retrenchment/separation are all terms for what is essentially the same thing. An offer of redundancy can be welcomed or come as a surprise. Either way the timing of any offer is often unexpected. It triggers lots of thoughts, emotions, fears and questions.

Importantly it's your position that's redundant not you. Your attitude to facing a redundancy is critical and will play a large part when faced with making decisions. A positive attitude, talking through issues and seeking guidance and advice from others including our super fund will give strength and focus to what may otherwise be murky emotions.

  • The offer

    Your initial decision may revolve around whether to apply for the offer or not. This is a highly individual judgment based on many factors and where the money side of things becomes important. Your decision will depend on your personal situation; taking stock of your needs and identifying your goals for the future.

    Your award, employment contract or agreement will detail your entitlements captured in the redundancy offer. An ESI FS financial adviser can help in clarifying your needs and objectives and identify the potential benefits and pitfalls associated with the offer.

    We can prepare advice specifically to assist you in making a decision. This advice will outline the implications of what the offer means to you.

    Depending on your circumstances you may be eligible for a generous subsidy for this initial advice as part of your Energy Super account. This is the first step in accessing our comprehensive ’lifetime’ financial planning services.

    Typically, a redundancy offer will include two elements: accrued leave (annual and long service leave benefits) and the ‘redundancy payment’ which is generally determined by a number of weeks per year of service. Accrued ‘time in lieu’ may also be included in the payment.

    The tax payable on the different components of the payment is a very important consideration when determining the net cash amount of the total payment. The Australian Taxation Office (ATO) has strict guidelines as to what constitutes a "genuine redundancy". Provided these guidelines are met, varying tax concessions may apply to the above components. Your employer will apply these concessions to the final payment where applicable. A key factor here is your age, as unfortunately these concessions are not available when you are 65 or older.

  • Staying with us

    The great news is that if you leave your employer you can keep your Energy Super account and continue to enjoy our member benefits and access all our member products and services.

    If you’re changing jobs whether it be in the energy industry or not, in most cases you can take your Energy Super account with you. Simply complete our Pay My Super into Energy Super form and give it to your new employer. If you have questions call us on 1300 436 374 for help.

    When leaving your employer there are a number of things you should be aware of:

    • If you’re a defined benefit member you will be moved to the defined contribution product. You don’t need to do anything as part of this transfer and we’ll give you information regarding your benefit as part of the process. Importantly, you can elect to continue your insurance cover as part of this transfer.
    • If you’re a defined contribution member your Energy Super insurance cover will continue automatically when you leave your employer. This means you will continuing with the same level of protection.
    • Your redundancy payments must be paid to your bank account and cannot be rolled into superannuation (please note specific conditions apply if you are over 65).
    • Your ability to access super depends on the preservation status of your super and meeting a condition of release.
    • On reaching your preservation age, consider setting up an Energy Super Income Stream account

  • Seek help

    Redundancy is generally an isolated or infrequent event in a career. It's important to know you don't have to face this on your own. We're here to help and make it easy for you. You can gain some initial information from us online, listen to a webinar, attend a tailored seminar or meet with a qualified financial adviser who has experience reviewing redundancy payments. We know your industry and can help with smoothing the impacts of this tumultuous event.

    How an ESI FS financial adviser can help:

    We have qualified financial advisers available to help you make the right financial decisions regarding redundancy. We can:

    • explain what the offer consists of and review the payments
    • help you make an informed decision on whether to apply for the redundancy offer or not
    • review your budget and identify your essential and discretionary living needs
    • determine if you’re eligible for Centrelink benefits
    • assess your need for life insurance, and the type and level of cover
    • consider your retirement position
    • design and construct an investment portfolio within and outside of superannuation
    • review your estate planning needs.

    Broader financial issues can be addressed as part of our comprehensive financial advice service. A fee is charged for this level of advice. This includes further goal setting and realisation, cashflow and investment asset management, covering your lifestyle risks/insurance, wealth creation, retirement planning and estate planning.

Meet with a qualified financial adviser

Your circumstances often change over time so it's worth reviewing your situation with your adviser every 12 to 24 months.

Book an appointment now