Significant Event Notice – December 2012

A new approach to insurance

In March 2013 we will be improving our group insurance for members through our arrangements with MetLife Insurance Limited (ABN 75 004 274 882, AFSL 238096), our new group insurer.

Insurance provides members and their families with financial security if difficult times are encountered. It can help protect you and your family in the event that you die, become permanently disabled, terminally ill or are unable to work due to illness.

Changes are being made to offer insurance features that are commonly available in other superannuation funds as well as to ensure that we meet the new insurance requirements of the Government’s Stronger Super reforms.

Your Action Required

  • You may be provided with new or additional insurance on an ‘Opt-out’ basis. Once you have read the following information, you need to let us know if you do not want new or additional insurance. We recommend you speak to your financial adviser before making a decision about your insurance.
  • By default, your insurance cost will be calculated with a ‘Heavy Blue Collar Skilled’ occupation category rating. Please refer to the table in the section ‘Occupation Details – Make sure you pay for what you get!’ to help you work out your correct rating. By letting us know your correct rating, you could pay less for your insurance cover.

What is changing?

Default cover – Death & Total and Permanent Disablement insurance (Death & TPD) will automatically be provided to members who receive superannuation guarantee contributions, on an opt-out basis.  This is an important benefit – it means that members will automatically receive Death & TPD cover without the need to complete forms or to have medical examinations.

When the new default cover starts, some conditions will apply to increased cover.  If you are not in active employment on the date the new default cover starts, any increase in your insurance cover will be restricted to new events only until you return to active employment for at least 30 consecutive days.

Active employment means a person who is capable of being employed without restriction by any illness or injury for at least 35 hours per week (whether or not they are actually working those hours).  Cover for new events means you are only covered for an injury that first occurs, or an illness that is first apparent, on or after the date the cover commences.  The new events restriction is removed after you have returned to active employment for 30 consecutive days.  If you never return to active employment then the new events restriction will apply indefinitely.

Increase in benefit limits – Upon application, members may be eligible for unlimited death cover and higher levels of terminal illness and TPD cover. The maximum insurable age for TPD is also increasing from 65 to age 70, although differing definitions and cover adjustments apply.

Transfer of insurance cover terms – If you hold insurance cover in another superannuation fund, you may be able to transfer that cover into our fund with minimal underwriting.  The amount of cover you can transfer is limited to $1,500,000 of Death & TPD cover and up to the lesser of 75% of your salary or $15,000 per month of Income Protection cover, including any existing cover held within the fund.

Life events additional cover – As your life changes, your insurance needs also change. Upon getting married, becoming a parent or buying a house you can apply to increase your cover with minimal underwriting. The increase in cover is limited to the lesser of $200,000 or 25% of your existing cover.

Online insurance capabilities – for example, ability to lodge insurance applications directly from the member website.

What does this mean for current members?

Moving to the new insurance arrangements will impact current members.

The impact on you will vary depending on whether or not you already have insurance through the fund.  If you are unsure about your current insurance status you can see your insurance details on your recent 2012 member statement.

If you do not currently have Death & TPD insurance with our fund then: 

If you currently have automatic Death Only cover: 

If you have optional Death Only insurance cover: 

If you have optional insurance cover (Death & TPD or income protection): 

Occupation details – make sure you pay for what you get!

It is very important that we have correctly recorded your occupation.  The category of occupation that we record for you will directly impact on the amount you pay for insurance, or on the level of cover you receive. It is in your interests to make sure that the fund has your occupation correctly recorded.

The following table can be used to determine your occupation category.  Please review the table and then advise us of your correct occupation category in one of the following ways:

Name: Your Full Name
Member Number: Your Member Number

Occupation and Industry

I have reviewed the occupation table and determined that my occupation category is Insert Your Occupational Category from the below table

We will use your occupation category from March 2013 to determine cover and premiums, so it is very important that you tell us the correct category.  Based on your self-classification and the occupation and industry that you have provided to us, we will write to you and confirm your final classification.

Table: Determination of occupation category

Do you work wholly in an office performing duties of a clerical or administrative nature?Do you hold tertiary qualifications relevant to your current occupation?If you answered yes to both of these questions, your occupational category isProfessional.
Do you work wholly in an office performing duties of a clerical or administrative nature?If you answered yes to this question, your occupational category is White Collar.
Do you perform light manual work only or supervise other manual workers?If you answered yes to this question, your occupational category is Light Blue Collar.
Do you hold tertiary qualifications relevant to your current occupation?Do you spend more than 20% of your time working outside of the office?If you answered yes to both of these questions, your occupational category is Light Blue Collar.
Do you perform heavy manual work or operate heavy machinery?Do you hold tertiary qualifications relevant to your current occupation?If you answered yes to both of these questions, your occupational category is Heavy Blue Collar Skilled.
Do you perform heavy manual work or operate heavy machinery?If you answered yes to this question, your occupational category is Heavy Blue Collar Unskilled.

I don’t want insurance through the fund

You can opt-out of the automatic insurances, or change or cancel your insurances at any time.

Provided you tell us before 6 June 2013 that you wish to opt-out of automatic insurance, you will not be charged any premium.

Being able to access Death & TPD insurance without forms and medical examination is an important opportunity for existing members.  Make sure you consider carefully your insurance needs and consider seeking professional advice from a financial planner if you are unsure.

However, if you are sure that you do not need the automatic Death & TPD cover offered by the fund from March 2013 then please:

Name: Your Full Name
Member Number: Your Member Number

 

Death & TPD cover

I wish to opt-out of the Death & TPD cover offered from March 2013. 

We recommend you speak to your financial adviser before making a decision about your insurance. If you choose to opt out of insurances you will need to be underwritten and assessed by the insurer if you later decide to apply for cover.

If you want to discuss insurance arrangements you currently have through the fund speak to your adviser or call us on 1300 134 337.

Where can I get more information?

We will provide a further update on insurance changes to you early in 2013 and will tell you exactly how your insurance has changed in April/May 2013.

For more information on premiums and levels of cover, please refer to this document:

Guide to insurance arrangements from March 2013

Other important changes to your account

Administration arrangements

We use a third party to provide administration services for the fund.  These are services such as processing contributions, making benefit payments and generally managing the administration of the fund for members.

We let you know earlier this year that Russell Investments (‘Russell’) will be responsible for fund administration in future.  Russell will take over responsibility for administration from April 2013.  We are currently working closely with Russell and the current administrator to ensure the transition process runs smoothly and to ensure minimal impact on members.  We will provide you with further information on the progress of the transition in future communications.

Treatment of lost member accounts and unclaimed monies

The Commonwealth government recently announced changes to the treatment of lost accounts and unclaimed superannuation monies.  The key point that emerges from these changes is that you should make sure that the fund has up to date contact details for you.  If you become uncontactable, the fund may need to transfer your superannuation benefit to the Australian Taxation Office (ATO) and this could have implications for you (such as the loss of insurance coverage).

The most recent announcements (if passed by the parliament) would require the fund to transfer accounts on the Lost Members Register to the ATO where the account balance is $2000 or less (previously the threshold was $200).  Most commonly, a member in the fund will be placed on the Lost Members Register when two pieces of correspondence have been returned to the fund.  A member may also be placed on the Lost Members Register if their account has been inactive for an extended period.  So again, make sure you know where your super is and make sure we know how to contact you.