Westpac to fatten up parents’ super funds

By Lanai Vasek    

Almost 2000 Westpac employees will benefit each year from a plan to pay superannuation on unpaid parental leave to all permanent staff: an Australian first.

The move, announced yesterday, would see the Westpac group — including St George Bank, BT Wrap and Westpac Bank — pay up to 39 weeks in employee superannuation contributions, in addition to existing parental leave entitlements, from tomorrow.

The initiative was the first of its kind in the Australian private sector and is estimated to be worth an extra $72,000 at retirement to an employee earning $55,000 a year, who has two periods of parental leave from the age of 28.

BT Wrap national marketing manager Natalie Sillar, 36, is about to go on her second round of maternity leave and said she was “so relieved” to know she could now have further financial security in her retirement.

“I think it is absolutely crucial for parents to have time off to be with their children and to not be penalised later in life,” said Ms Sillar, who is due in October and has a one-year-old daughter.

“This initiative definitely makes me breathe a bit easier about taking the time off.”

Westpac chief executive Gail Kelly said the new superannuation contribution was inspired by her own unpaid leave.

“When the idea was first put to me, there was no question that because I’d had children, and periods of unpaid leave throughout my career, I recognised how so very important it was,” Mrs Kelly told The Australian yesterday.

According to the Association of Superannuation Funds of Australia, the average woman has just $45,000 in her super account on retirement, compared with $130,000 for the average male.

Sex Discrimination Commissioner Elizabeth Broderick yesterday congratulated Westpac on “such an important initiative”.

“For the businesses that have the capacity to pay, I think there is no question this should become the accepted scheme,” she said.

Article from the Australian, June 30, 2010.