TelstraSuper commits to more super upon parental leave return

TelstraSuper has announced it will now pay employees who return to part-time roles after parental leave the full-time equivalent in superannuation guarantee (SG) contributions, regardless of the hours they work.

This initiative will be in place for two years and will help to improve financial security for those who return to work after returning from parental leave, particularly after the recent gender pay gap statistics released from the Workplace Gender Equity Agency (WGEA) and the Australian Bureau of Statistics (ABS).

Modelling completed by the fund shows paying an extra two years of full-time SG contributions for a 32-year-old employee returning to work for three days part-time would provide an additional $42,000 at retirement.

According to ABS statistics from the 2019-2020 financial year, the median superannuation balance of women aged 65 years and over was $168,000, compared to men the same age retiring with $208,200.

“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,” TelstraSuper CEO and WGEA pay equity ambassador, Chris 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.

“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.

“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.”