In line with our commitment to helping close the super gender gap, TelstraSuper is boosting super payments for its employees who take on part-time roles after returning from parental leave.
Under the new Parental Leave Program, TelstraSuper employees returning from parental leave will receive full-time Super Guarantee (SG) contributions for a period of two years, regardless of the hours they return to work.
TelstraSuper CEO Chris Davies, said the new program would help narrow the gender super gap for employees at the Fund, improving the financial security for those who returned from parental leave and chose to work part-time.
“TelstraSuper recognises the need for more government measures to help close the super gender gap, so as an employer we wanted to explore how we might improve the retirement outcomes for our own employees,” Mr Davies said. “This is an important equity measure that will make a real difference to all employees who take parental leave and would otherwise receive less super if they returned to work in a part-time role.”
Modelling by TelstraSuper shows an extra two years of full-time SG contributions for a 32 year old employee working three days in a part-time role, could be worth almost $42,000 (in today’s dollars) at retirement^.
TelstraSuper pays superannuation on paid and unpaid parental leave, allowing employees to access 16 weeks’ paid parental leave in whatever way best supports them and their families. The policy also doesn’t differentiate between primary or secondary caregivers. These arrangements have been popular among both male and female employees.
Mr Davies, who is a pay equity ambassador for the Workplace Gender Equity Agency (WEGA), has also been active in calling on the government to add super to its paid parental leave scheme.
In the 2019-20 financial year, the median superannuation balance of women aged 65+ years was $168,000 for women, compared to $208,200 for men.*
“The reason for the gap is a complex mixture of systemic and workplace issues such as the gender pay gap, unpaid caring work, part-time work and even financial literacy. The difference in super balances starts out small and widens progressively as the power of compounding interest takes effect.”
Mr Davies said TelstraSuper was committed to improving the position of women in its workplace, and showing an example to the industries it served, and the broader Australian community towards achieving super equality.
“While there is no silver bullet to closing the super gender gap, it’s important that employers recognise the role they can play in helping improve retirement outcomes for women,” he said.
He encouraged other employers to explores ways to help close the super gender gap, adding that supportive parental programs could also have the added benefit of attracting new employees and boosting engagement and retention.
*ABS (2022) Household Income and Wealth, Australia (2019-20 financial year).
^ Based on a 32 year old employee on a full-time salary of $125,000 returning to work on a part-time salary of $75,000. Modelling assumes the employee retirees at age 67; Super Guarantee at 12%; return of 7.13% (based on the Fund’s 10 year annualised return for the balanced option); inflation at 2.6% and AWOTE 3.5%.
Key Facts:
In the 2019-20 financial year, the median superannuation balance of women aged 65+ years was $168,000 for women, compared to $208,200 for men.*
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About TelstraSuper: TelstraSuper is an award winning profit-to-member super fund that anyone can join. We support our members to grow and protect their retirement savings with competitive fees, and a leading member experience. Learn more at telstrasuper.com.au
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Corporate Affairs and PR Manager Sarah Goodwin| 0401 769 296 | [email protected]
