'Putting members interests first'
The Government has legislated additional measures to 'protecting your super', which will commence on 1 April 2020.
These measures prohibit superannuation trustees from providing insurance for members from 1 April 2020, for members who:
- are under the age of 25 and begin to hold a superannuation account from 1 April 2020 and have not made an election to obtain cover.
- have a super account balance that is consistently less than $6,000 since 1 November 2019, and have not made an election to obtain or maintain insurance.
Members are able to opt into insurance offered by the trustee, by making an appropriate election, by either
- a written election the member wishes to take out or maintain insurance, even if the member is under the age of 25 years; or
- a written election the member wishes to take out or maintain insurance, even if the member has an account balance with the fund that is less than $6,000.
Also, the 'putting member's interests first' prohibits a trustee of a regulated superannuation fund from providing insurance to a member of a choice product or a MySuper product from 1 April 2020 where
- the member has an account balance that is less that $6,000; and
- on or after 1 November 2019, the member's account balance has not been equal to or greater that $6,000; and
- the member has not made an appropriate written election to obtain or maintain their insurance.
There are exceptions to providing insurance to members in dangerous occupations. Super fund trustees are required to notify members if the dangerous occupation exception applies to them.
As you would know, everyone's situation is unique. Members should confirm directly with their super provider the need to make an election to maintain their insurance. Members wishing to make an election should contact their superannuation fund to find out how to make a valid election for that specific fund and circumstance.
The Money Edge | Bundaberg