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 $6,000). What this means for Sunsuper members is that anyone with a balance of less than $6,000 at 1 April 2020 will have their insurance cover cancelled (effective 31 March), unless they make an active choice before then to keep their cover.
Also, new members joining the fund and current members opening a new account from 29 March 2020 will not be provided with automatic insurance cover unless they are aged 25 years or older and have a balance of at least $6,000 in their super account (subject to the other rules of the super fund regarding when insurance cover is provided).
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 is Sunsuper doing to notify members?
We initially notified Sunsuper members with low balances in November 2019 about the changes and asked them to contact us if they’d like to keep their cover. We also recently sent a reminder communication to these members.
We continue to communicate to anyone that has joined the fund or received insurance since our initial notification, and any members whose cover was previously cancelled due to cessation or lapsing rules.
What can members do?
Members at risk of having their insurance cancelled should have received communications from their super fund. We encourage all 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.
For more information about the PMIF legislation, please see our guide.