The MLC AdvantEdge financial services program has scored the box seat, striking a deal with Telstra to supply a range of financial services to the 55,000 employees of the telecommunications giant.
The agreement also involves AdvantEdge taking a part in the redundancy package to be offered to the approximately 15,000 Telstra employees in line for payouts, putting AdvantEdge financial planners in a potentially lucrative, and enviable, position.
A Telstra spokesperson officially confirmed the alliance with AdvantEdge was formed late last year, and was the result of a tender after employees voiced the need for increased services.Money Managementfirst became aware of proceedings between the two groups last October, but at the time both MLC, AdvantEdge’s parent group, and Telstra declined to comment.
The redundancy component of the deal involves the provision of a $150 voucher by Telstra to the former employees. The voucher can be used towards obtaining financial advice, but only if it is sought from advisers within the AdvantEdge program.
Telstra’s spokesperson says the voucher offer is a small part of the redundancy program, which is a full transition service running up to six months, and there have been no complaints from Telstra staff.
“Telstra is not instructing staff that they can only source [advice] from one area, and the voucher and package is just part of a far broader relationship under the contractual agreement,” he says.
AdvantEdge will not be providing superannuation under the contract arrangements, but services available to Telstra employees will include access to legal and tax helplines, and educational seminars.
Telstra’s spokesperson says the group will be reviewing the contract in 2002.
