What is the Putting Members' Interests first legislation (PMIF)?
Who is impacted by the changes?
Example 1 – Anna (age 22)
Anna is 22 years old, has $2,000 in her super account, and has insurance cover. Sunsuper lets her know that unless she grows her balance to above $6,000 or lets them know she wants to keep her insurance cover, they will be required by law to cancel her cover on 1 April 2020.
Anna contacts her fund in writing to state that she wishes to keep her insurance cover prior to 1 April 2020, and her super fund then makes note of this. On 1 April 2020, Anna’s insurance cover would not be cancelled as she has let her fund know she wanted to keep her cover.
Example 2 – Nic (age 35)Nic is 35 years old, and was communicated to prior to 1 April 2020 that his insurance cover would stop if he didn’t grow his balance above $6,000 or let Sunsuper know he wants to keep his cover.
On 1 April 2020, Nic’s balance has grown to $4,500, but he has not let Sunsuper know he wanted to keep his insurance cover. Under the new rules, Nic’s insurance cover would be cancelled as he didn’t have a balance of more than $6,000 and didn’t communicate he wanted to keep his cover in writing to Sunsuper.
In addition to this, from 29 March 2020 any new members joining Sunsuper or waiting to have their standard insurance cover commence won’t have their cover start until they’re at least over the age of 25 and have a balance of at least $6,000 in their super account (subject to other rules of the super fund regarding when insurance cover is provided).
Example 3 – Melvin (age 33)
Melvin is 33, and his employer has opened a Sunsuper account for him by making an Superannuation Guarantee (SG) contribution of $300 on 3 April 2020.
Although Melvin is over 25 and his employer has made an SG contribution into his account, Sunsuper would not immediately provide him with insurance cover until his balance is over $6,000.
On 15 April, Melvin chooses to consolidate his other super into his Sunsuper account, and rolls in $6,000. Melvin’s insurance cover would now commence on 15 April (the date the money was received) as his balance after receiving his rollover would now be over $6,000.
Example 4 – Michelle (age 24)Michelle is 24, and her employer has opened a Sunsuper account for her by making an SG contribution of $800 on the 28 April. On 30 April, Michelle then consolidates all her other super accounts into Sunsuper, and rolls in $8,000.
Although Michelle’s balance is now above $6,000 as at 30 April, her fund would not immediately provide her with insurance cover until she turns 25 and meets any other additional requirements in her Insurance guide.
- I have active insurance cover on my Sunsuper account
Sunsuper members with active insurance cover identified as having a balance of less than $6,000 will generally have their insurance cover cancelled from 1 April 2020 (effective at 31 March) unless they:
- are a Defined Benefit member;
- have an employer who pays your insurance cover in full;
- have made an active decision about your insurance cover (ie. been underwritten for existing insurance cover, have applied to increase/decrease cover); or
- have previously communicated to Sunsuper in writing that you would like to keep insurance cover.
- My insurance cover is yet to become active, or cover is yet to automatically restart.
If you’re a Sunsuper member and your insurance cover is yet to start or restart if your cover had previously been ceased, your future cover may be impacted depending on when your new cover starts.
If your cover starts:
Prior to 29 March 2020 - You’ll be subject to the same rules as a member who has active insurance cover on their account.
From 29 March 2020 - New rules will be in effect where you’ll be required to be over 25 and have a balance of at least $6,000 before standard cover commences (subject to the rules of the fund).
- I have joined Sunsuper from 29 March 2020
If you’re a new member who joins Sunsuper after 29 March 2020, new rules will be in effect where you’ll be required to be over 25 and have a balance of at least $6,000 before standard cover commences (subject to the rules of the fund), unless you:
- are a Defined Benefit member;
- have an employer who pays your insurance cover in full; or
- have previously communicated to Sunsuper that you’d like to have your insurance cover start earlier (subject to the rules of the fund).
What is Sunsuper doing to communicate these changes to members?
Is insurance cover right for me?
I am ready to make a choice about my cover, what are my options?
Keep your insurance cover
- By navigating to the ‘Keep your insurance cover’ section in Member Online (you’ll find this in the Insurance sub-menu); or
- Completing the online Keep your insurance cover form (you’ll need your Sunsuper Member number for this).
Once we’ve recorded your request, we’ll confirm in writing that your insurance cover will continue.
Cancel your insurance cover
- By navigating to the ‘Reduce or cancel your insurance cover’ section in Member Online (you’ll find this in the Insurance sub-menu);
- Contacting us on 13 11 84.
Once we’ve recorded your request to cancel cover, we’ll confirm when this occurs to you in writing.
1 Sunsuper employees provide advice as representatives of Sunsuper Financial Services Pty Ltd (ABN 50 087 154 818 AFSL No. 227867) (SFS), wholly owned by the Sunsuper Superannuation Fund.
2 Sunsuper has established a panel of accredited external financial advisers who are not employees of Sunsuper. Sunsuper is not responsible for the advice provided by these advisers and does not receive or pay any referral fees. These advisers will explain to you how their advice fees are determined.