In a move to implement key superannuation reforms designed to protect individual Superannuation members, the Federal Government has passed the Treasury Laws Amendment (Protecting Superannuation Package) Act 2019.
The Act introduces the following changes that may impact you.
If you have an ‘inactive’ super account (ie. which has not received a contribution (or rollover) for 16 months and you have not elected to keep your insurance), then any insurance cover contained in your super will be cancelled from 1 July 2019.
Your Action Now
To avoid your insurance being cancelled, you must notify your superannuation fund before 28 June 2019 or make a contribution or rollover by 28 June 2019. You may have already received (or soon will receive) a communication from your superannuation Trustee informing you of this legislative change with details on how to keep your insurance cover by completing a form and/or make a contribution into your super account. Please note, some superannuation providers may indeed act sooner so please don’t delay.
Once you have made your election to retain your insurance it remains effective indefinitely with the superannuation fund.
If you are unsure how to proceed, we can help you.
What You Need to Know
We are aware that some of our clients deliberately hold multiple super funds for the insurance coverage (often because of a pre-existing health condition which is ‘uninsurable’ elsewhere). If you are one of these clients you must notify your super provider that you want to retain your cover within super or it will be cancelled. We cannot make this nomination for you.
For Help and More Information
Please contact us immediately to discuss your situation to ensure you retain your valuable insurance cover.