Find out more about the latest MySuper changes
The new MySuper reforms introduced by the Australian Government has come into effect from the 1 January 2014 and is the new default account in superannuation funds. It aims to provide a wider range of disability insurance options in superannuation funds.
To overcome situations where TPD benefits were approved for the claimant however the fund would not release it due to the claim not meeting their own set of conditions, there is now a unified description for total and permanent disablement (TPD) claims that align with the Superannuation legislations.
TPD coverage included by default
As a standard, you will be covered for life and TPD insurance to a default level unless you nominate to opt-out. If you do nothing, you will automatically be paying premiums to receive cover.
If you decide that you do not want to pay premiums for the cover, you will need to let your superannuation fund know. What you need to be careful of is that some superannuation funds may impose conditions, which you must meet before you are covered. These may include things like minimum required balance and/or defined minimum working hours.
For example: if you work part-time and your hours do not meet the required hours set out by your MySuper initially, but further down the track your hours increase (even if it is only temporarily) you will need to let your superannuation fund know so your coverage can begin at the earliest time. Otherwise you could miss out on your TPD and life insurance coverage.
The important thing to note is that with the introduction of MySuper, your superannuation fund must offer, in addition to what is in your account balance, which you can also get access to if you qualify for TPD benefits.
Unless your fund is a defined benefit fund, superannuation funds will no longer be able to self-insure TPD benefits after the transition period. This rule was introduced so that any member claims are not paid using other members’ funds balance.
How can we help you?
If your claim has been rejected by your superannuation fund and you need advice on what you can do, give us a call on 13 43 63 or via our online enquiry form. You will find more articles by Adam on superannuation, death benefit, insurance and TPD in our Blog section. Adam also provides superannuation advice regularly on 2GB873AM, you can find his podcasts and transcripts on our Podcast page.
‘No Win – No Fee’ for TPD claims
Turner Freeman Lawyers can help you with your Superannuation, Disability & Insurance compensation claims. We can also help you contest, challenge or dispute a rejected disability claim on a ‘No Win No Fee‘ basis.
How we can help with your TPD claims
Call 13 43 63 to speak with our superannuation and TPD claims experts in Queensland. Alternatively you can visit us at any of our offices in Brisbane, North Lakes, Logan, Ipswich, Toowoomba, Gold Coast, Sunshine Coast and Cairns.