From 1 July 2019, the Protecting Your Super legislation, designed to protect member's super savings from unnecessary fees and insurance premiums takes effect.
For Sunsuper members, under the rules of the fund, this means that we'll cancel insurance cover if an account has not received eligible contributions* for 12 months, regardless of account balance, unless we're advised by the member that they'd like to keep the cover.
While no-one expects the worst to happen, having the right insurance cover in place could help you or your family through a difficult time. However, you also need to consider the impact of your insurance premiums on your super balance.
You can check your insurance cover at any time by logging into Member Online or the Sunsuper app. If you need help to determine if insurance cover is right for you, you should consider speaking with a qualified financial adviser.
How to keep your insurance cover.
Keeping your insurance cover is as simple as completing the online form.
We’ll record your request and confirm in writing that your insurance cover will continue. Make sure you carefully consider the effect of insurance premiums on your account balance before making a decision. Please note: We can’t accept a request to keep your super over the phone.
Payment of low balance inactive accounts to the ATO
As part of the new legislation, any low balance inactive super accounts will be transferred to the ATO. The ATO will help reunite any amounts transferred with members’ active super account. This change aims to prevent members with inactive low account balances from having their super savings eroded by fees.
Under the new rules, Super-savings accounts with a balance under $6,000 must generally be transferred to the ATO unless the member has in the previous 16 months:
• Received a contribution, rollover or automatic transfer from another fund,
• Made an investment choice,
• Changed their insurance cover,
• Made or amended a binding beneficiary nomination, or
• Provided written notice to the ATO or to Sunsuper that they do
not wish for their Sunsuper account to be transferred.
The first transfer to the ATO will be made on or before 31 October 2019.
•The ATO will protect your super and not charge any fees.
•Interest will be applied to your account, calculated using the consumer price index (CPI).
•The ATO will try to reunite any super transferred to them with your active super account (if you have one).
The exit fee will be removed from 1 July 2019 and members won’t be charged for withdrawing from or closing their accounts in any circumstances.
*Note, under the ‘Protecting Your Super’ legislation, the maximum period of not receiving an Eligible Contribution before your insurance cover is cancelled is 16 months. To align with our commitment to comply with the Insurance in Superannuation Voluntary Code of Conduct and to further help reduce the impact of insurance premiums eroding your account, we have selected a period of 12 months.