Retrenchment benefit

You’ve been retrenched. What Now?

Your retrenchment benefit will only be paid upon receipt of written certification from your employer stating that you have been retrenched. This written certification must be signed by the Chief Executive Officer, General Manager, HR Manager or equivalent.

The payment of the superannuation retrenchment benefit is separate to any severance payment made by your employer as part of the conditions of your employment.

Before your minimum retirement age?

If you are retrenched before your minimum retirement age, your payment will be made in two parts:

• an immediate cash lump sum payment, and
• a preserved lump sum component that must be rolled over to another complying superannuation fund.

There are no further benefits payable after a retrenchment benefit has been paid.

After your minimum retirement age?

If you are retrenched after your minimum retirement age, your benefit will be the same as the Age Retirement Benefit.

Members who transferred from the Revised Scheme between 1988 and 1990

If you are entitled to a deferred pension because you transferred from the Revised Scheme to the New Scheme between 1988 and 1990, you must apply to commence your pension. If you do not apply at your minimum retirement age (normally age 55) you will not be entitled to receive pension payments for the period from your minimum retirement age to the date of your application (unless applying over the age of 60 when it will be backdated but only to age 60).

You have a choice!
Instead of a deferred pension you can elect to receive a lump sum calculated as if you had been retrenched at the date of transfer to the New Scheme.

If you elect a lump sum in lieu of a deferred pension, no further benefit is payable.

If you have a deferred benefit you may be eligible to apply for early release (of part of your benefit) due to financial hardship, provided you are under age 55. You must also provide written proof from Centrelink confirming that you have been receiving a benefit from them for at least six months.

• Interested in finding out how disability pensions work?