Emergency services members: thinking about parental leave?

ESSSuper - 10 Oct 2024

You've probably read recent news articles about super payments and parental leave. It's a hot topic: if super isn't paid on parental leave, primary carers can be at a disadvantage when it comes to building enough savings for retirement.

If you're in the ESSS DB fund, you have many advantages – your super and parental leave works differently to that of many Australian workers. As an ESSS DB member, your final super benefit is calculated based on several factors, including your salary, period of service, and your contribution rates throughout your career.

When you take certain types of parental leave, this period is counted as service—meaning your super benefit continues to grow as though you were still working.

This is a significant bonus: it can help to ensure your super remains on track, even when you're taking time to focus on your family.

How does parental leave work for ESSS DB members?

Importantly, when you take paid parental leave, your super will continue to grow. During your employer paid parental leave, this time counts fully towards your years of service, which means your super benefit keeps growing in line with your regular contributions and time fraction.

Even during some unpaid parental leave, your time in service can continue to accumulate.

However, it's important to note that unpaid leave may have other impacts on your super as well as on whether you're covered for death and disability.

Where can I find out more?

If you're looking for more detailed information on how your super works during parental leave, we encourage you to explore our resources:

• Listen to our latest podcast episode, where we delve deeper into the specifics of the defined benefit formula for parents-to-be.
• Watch our new video, Parental Leave and Emergency Services Defined Benefit.

 
Thinking about starting or growing your family?

Understanding how your super contributions work during periods of leave is key to securing your financial future.

To learn more about your options and how to maximise your contributions, check out our resources or get in touch with us to make an appointment for personalised advice.

Emergency Services Superannuation Board (ABN 28 161 296 741) (ESSB), the Trustee of the Emergency Services Superannuation Scheme (ABN 85 894 637 037) (ESSSuper).

The Board recommends that you seek financial advice before acting upon this information. Benefits in ESSSuper's Accumulation Plan, Income Streams, and Beneficiary Account products are not guaranteed or underwritten by the Victorian government or ESSSuper. If you joined the ESSS Defined Benefit Fund before 12 May 2009, grandfathering provisions might apply, so the limits of contributions you can make may differ. The Board recommends that you check your parental leave entitlements with your employer, as employers have differing arrangements.

The information contained in this article and podcast is of a general nature only. It should not be considered as a substitute for reading ESSSuper's Product Disclosure Statement (PDS) that contains detailed information about ESSSuper products, services and features. Before making a decision about an ESSSuper product, you should consider the appropriateness of the product to your personal objectives, financial situation and needs. It may also be beneficial to seek professional advice from a licensed financial planner or adviser. An ESSSuper PDS is available at esssuper.com.au/pds or by calling 1300 650 161.