The Government’s Protecting Your Super (PYS) reforms continue
26 November 2019
As part of the Government's ongoing changes to insurance in super that began on 1 July 2019, designed to protect members' super balances, the Government in September 2019 passed its newest reforms - Putting Members' Interests First (PMIF). The PMIF legislation will apply from 1 April 2020. Read on to see how it may affect you.
Currently, most members have automatic default basic Death and Total and Permanent Disablement (TPD) cover when they join TWUSUPER where:
- an employer contribution has been received,
- the member is aged between 18 and 70, and
- they have at least $500 in their TWUSUPER account.
The aim of the Government changes is to prevent account balances from unnecessary erosion by insurance fees (premiums). This means that at 1 April 2020, unless you tell us you want to keep your insurance cover we are required to:
- remove any default basic cover on your account if your account balance is less than $6,000, and
- not add any default basic cover until you are age 25 and your account balance is at least $6,000 (unless you tell us you want insurance cover).
What happens next?
If you currently have basic cover on your account, and your account balance is less than $6,000, we must remove it at 1 April 2020, unless you tell us you want to keep it.
TWUSUPER will write to members with balances under $6,000 providing more information and a form to complete and return if they wish to keep their insurance.
After you receive your letter or email
Have your correspondence handy with your unique code then use the online form if you wish to keep your insurance.
No letter or email?
If you haven't received correspondence or don't have your unique code handy, you can download and fill in your election form then either:
- upload it as a PDF attachment to our online enquiry form, or
- post it to us.
Dangerous occupation exemption
TWUSUPER may be able to apply a dangerous occupation exemption because you work in a dangerous occupation (where an actuary determines particular occupations are dangerous). If you meet the exemption, we will write to you to let you know. What this means for you is that, if your job is granted an exemption as a dangerous occupation, we won't remove your insurance cover if your account balance is less than $6,000 at 1 April 2020.
To help us understand the occupations of our membership, please take a moment to let us know your occupation.
Benefits of insurance in super
We offer a base level of insurance cover – like a safety net – to protect you and your family if you die or suffer from an illness or injury. If you need more than the base level, you can apply for it. Certain jobs within the transport and logistics industry can be dangerous, and the level of cover we offer members may not be available for a similar price under a retail policy.
We work hard with our insurer, TAL, to provide you with cover and affordable insurance fees, but ultimately, the decision for holding insurance in your super is your choice.
Is insurance right for you?
Consider how much money you and your family would need to support your lifestyle if you could no longer work due to illness or injury.
You can use our Insurance cover and cost calculator to find out what insurance you might need and what it might cost. Members can also receive limited financial advice over the phone* at no extra cost. Call us on 1800 222 071 for more information.
* The Trustee has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195, AFSL No 232514 to facilitate the provision of financial advice to members of TWUSUPER (Fund). Advice is provided by TWUSUPER financial advisers who are representatives of IFS. Fees may apply. Further information about the cost of advice is set out in IFS' Financial Services Guide, a copy of which can be obtained by calling 1800 222 071. IFS is responsible for any advice given to you by its representatives.
The cost of providing certain phone-based financial advice services is incorporated into the fees that are applicable to all super accounts. Fees for comprehensive financial advice provided to you either over the phone or face-to-face are charged to you directly and will be set out in your Statement of Advice.