*Content in this blog relates to New South Wales legislation.
If you are a police officer and you were attested on or after 1 April 1988 in the NSW Police Force, you would likely have heard of the recent changes to your Total and Permanent Disablement (TPD) coverage through Aware Super that came into effect on 7 December 2022.
What is Total and Permanent Disablement (TPD) coverage?
The general public are typically not well informed about the insurance policies which are packaged with their superannuation fund, particularly, their TPD insurance.
If you are a member of the Aware Super scheme, and you have been unable to return to work for an extended period of time and for the foreseeable future due to injury or illness, you have potential access to TPD benefit.
Do The Changes Affect Me?
Whether you are currently serving, or are in the process of leaving, or have been medically discharged from the NSW Police Force, the changes may affect you.
The following NSW Police Officers have been affected by the changes:
- A police officer in the NSW Police Force that was attested on or after 1 April 1988 but prior to or on 20 January 2012 and elected to convert out of the State Authorities Superannuation Scheme (SASS) scheme in 2012 to Aware Super (formerly, First State Super), or
- A police officer in the NSW Police Force that was attested on or after 20 January 2012 and your superannuation fund is held with Aware Super (formerly, First State Super).
The changes do not apply to the following:
- NSW Police Officers attested prior to 1 April 1988, or
- NSW Police Officers attested on or after 1 April 1988 but prior to 20 January 2012 and did not convert out of the State Authorities Superannuation Scheme (SASS) scheme.
What Are The Changes?
Prior to the changes, you had access to two separate types of insurance through the fund, as follows:
Part 1: Death, and TPD Police Category Insurance
Part 2: Death, TPD, and income protection under Police Blue Ribbon Insurance.
However, in late 2022, it was announced that the Part 1 benefit only (except for Death Cover under Part 1) will cease from 7 December 2022. Your TPD entitlements under Part 2 remain unchanged.
What Does This Mean?
Prior to the changes being made, a police officer in the NSW Police Force had access to both parts of the policy. For all intents and purposes, if you were approved for payout in both parts, it meant a higher payout.
Now, if the “insured event” occurred after 7 December 2022, you will no longer receive a larger payout, if you are found to meet the definition of TPD. However, you will no longer pay for the premiums associated with the Part 1 coverage.
Moreover, it is expected that if the insured event occurred prior to 7 December 2022, you will still be entitled to pursue your TPD claim under both parts of the policy.
The insured event is the date from you were diagnosed with the injury or illness which causes you to be totally and permanently disabled. That is, if you were diagnosed with the injury or illness prior to 7 December 2022, the superannuation fund should honour the policy retrospectively.
Get In Touch With Us
However, it has been our experience to be proactive with lodging a claim notwithstanding any indications provided by the superannuation fund. If you have been off work for an extended period of time and do not see yourself returning, you can contact our office for further information.
At Turner Freeman, we have dedicated lawyers specialising in compensation for officers of the NSW Police Force, and who will assess your case and provide personalised advice regarding your legal entitlements and will act for you on a “no win, no fee” basis. For further information contact us today on 13 43 63.