Redundancy offer or invalidity process?
Before a member is offered a redundancy, employers should determine whether they might be entitled to invalidity benefits instead. Generally, an invalidity retirement pension is payable if we agree to retirement because of a permanent medical condition which is likely to stop the member from working again. If this applies to them at the time they are made redundant, they may decide at any time to make a retrospective invalidity claim.
If the member does decide to make a retrospective invalidity claim, we are required to make a determination to approve or reject their application; this is a decision that is often easier to make when the member is still employed.
A retrospective claim can be lengthy as the member will be asked to provide medical evidence at the time of their exit. This may result in them contacting you for copies of their historical personnel records. They will also be asked whether they had any awareness of the invalidity retirement process when their employment ended and why they did not pursue this option; highlighting the importance of informing them of this option.
The member may also be asked questions about any payment(s) received upon ceasing employment, whether they would not have received the payment if they had been retired on the ground of invalidity, and if they have indicated that they would not be willing to repay an amount equal to the relevant payment if their application was approved.
We ask that you encourage members to seek financial advice and guidance with regards to all superannuation situations.