Employees who accept an offer of voluntary redundancy may be entitled to be paid a superannuation benefit as a result of the termination of their employment.

Some superannuation schemes provide specific redundancy (retrenchment) benefits to eligible members. Employees will only be entitled to be paid a superannuation retrenchment benefit if the reason stated by their employer for their termination of employment comes within the meaning of retrenchment in the schemes' rules.

A Judgment handed down in the NSW Supreme Court, for example, found that a former employee who accepted voluntary redundancy was not entitled to a retrenchment benefit from the State Superannuation Scheme because the reason stated by the employer for his termination of employment was not consistent with any of the grounds defined for retrenchment in the Superannuation Act 1916.