With the 1 April 2020 commencement date for the government’s Putting Members’ Interests First (PMIF) legislation changes to insurance fast approaching, it’s vital for members with low balances to make a choice about whether they would like to retain their insurance before their cover is cancelled.
Who is impacted by the changes?
The PMIF legislation aims to protect members’ retirement savings when they are “young” (under age 25) or have a “low balance” (less than $6000).
What does this mean for members with a super account balance of less than $6000?
As at 1 April, any members with a super account that has a balance of less than $6000 will have their insurance cover cancelled (effective 31 March), unless they make an active choice to keep their cover.
How can members keep their insurance cover?
Members at risk of losing their cover should notify their super fund in writing if they would like to keep their insurance cover.
New members excluded from automatic cover can opt-in to insurance cover when they join their super fund or open a new account.
What else can members do?
Members at risk of having their insurance cancelled should have received communications from their super fund.
We encourage these members to review these communications and consider whether their current insurance arrangements meet their needs. If members with low balances would like to keep their insurance cover, it’s important they contact their super fund as soon as possible.
For more information about the PMIF legislation, refer to our Sunsuper guide for members at sunsuper.com.au/insurance/putting-members-interests-first-pmif-legislation
This article has been prepared and issued by Sunsuper Pty Ltd, the trustee and issuer of the Sunsuper Superannuation Fund. Sunsuper Pty Ltd ABN 88 010 720 840, AFSL No. 228975, is the Trustee and issuer of the Sunsuper Superannuation Fund ABN 98 503 137 921, USI 98 503 137 921 001. Visit sunsuper.com.au or call 13 11 84 for a copy of the PDS