In 2019/20, the Federal Government introduced the ‘Protecting your super’ and ‘Putting members’ interests first’ reforms to help reduce the chance of members’ super being eroded by insurance costs. Learn more about both changes below and what you can do if you wish to keep your insurance on.

Protecting your super (PYS)

On 1 July 2019 the Government introduced legislation to protect superannuation members from account erosion due to excessive fees or unnecessary insurance. This included the removal of exit fees, limiting fees charged on low account balances, and the cancellation of insurance for inactive accounts (ie. no contributions to your account for at least 16 months).

Inactive accounts

• If your account is deemed ‘inactive’ (i.e. no contributions to your account for at least 16 months) you will receive a letter to inform you when your insurance will be switched off. To keep your insurance switched on: You must notify us in writing via our insurance form before the cancellation date set out in the reminder letter we will send you.

• If your insurance has been cancelled and you wish to reinstate it : You must notify us in writing within 90 days of your insurance being cancelled. (Additional terms and conditions may apply and these will be set out in the cancellation letter we will send to you). If a valid election to reinstate your insurance is received, your insurance cover will be reinstated with no gap in cover. An election received after 90 days will be subject to you providing additional information about your health and lifestyle, and subject to approval by the insurer.

Complete our insurance form to elect to keep your insurance switched on, or to elect for your insurance to be reinstated

Putting members interest first (PMIF)

The Government introduced PMIF legislation, which went a step further than the PYS changes to protect members’ superannuation balances. The PMIF changes took effect from 1 April 2020*. What this means for most superannuation fund members is that a fund cannot switch on ‘automatic’ insurance cover for a member until:

• the member has turned age 25, and

• the member’s account balance has reached $6,000

Members can, if they wish, provide an election to the fund to turn their ‘automatic’ cover on before the above criteria have been met. An election can be provided using our insurance form. More information about the insurance cover available to you in the fund, and how to turn it on, will be provided in your Welcome Letter on joining the fund.

* Some employer superannuation plans may be exempt from the above rules (‘PMIF-exempt’) because the employer has elected to pay all fees and costs related to ‘automatic’ insurance cover in the plan, on behalf of its members. In plans where this occurs, eligible members can have insurance cover from the date they are joined to their employer’s plan. Your Welcome Letter will provide information on your insurance cover

Complete our insurance form to opt-in