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You have a choice of two LWOP contribution options when you start LWOP:
Contribution options
| Option 1 |
Make no LWOP contributions, or |
| Option 2 |
Make LWOP contributions to maintain your death & disability cover. |
If you do not provide the completed Leave without Pay Advice form together with your payment to ESSSuper within one month from the date on which your LWOP commences, you will be treated as if you had chosen Option 1, the nil contribution option.
Your election will be irrevocable and binding once it is lodged.
Option 1 - Make no LWOP contributions
You are not required to make personal contributions to your superannuation while you are on LWOP.
PLEASE NOTE: If you choose Option 1, the following applies:
- There will be no death or disability cover after the first four weeks.
- If you resign while on LWOP, the only benefit payable will be your resignation benefit.
- The period of LWOP will not count as recognised service for any benefit calculation.
- If you return to work for at least 12 months from parental leave without pay before resigning, up to one year of the leave without pay period will be counted towards the deferred benefit component of your resignation benefit. The 12 month return to work condition applies for each period of LWOP granted during your service.
Option 2 - Maintain death & disability cover
You may choose to maintain your death and disability cover while you are on LWOP.
Your LWOP contribution is calculated based on your age (in years and days) as at 1 May and your superable salary at the start of your unpaid leave period. No LWOP contributions are payable for 60+ years.
PLEASE NOTE: If you choose Option 2, the following applies:
- Your normal death and disability cover will be maintained based on your final average salary at the start of your unpaid leave.
- If you resign while on LWOP, you will be entitled to all of your contributions (including your LWOP contributions) up to the date of resignation, plus interest.
- If you return to work after your period of LWOP, the period for which you made contributions will count towards your resignation benefit. Your LWOP will not count as recognised service for all the other benefit calculations (retirement, retrenchment, death or disablement).
Paying LWOP contributions
If you choose to pay LWOP contributions under Option 2, the LWOP contributions must be paid within 30 days of the start of your LWOP. There are 2 options:
- Make a cheque payable to ESSSuper and submit directly to ESSSuper with the advice form, or
- Arrange for your payments to be credited to ESSSuper through your credit union or bank.
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