Australia's new Putting Members' Interest First (PMIF) legislation takes effect on 1 April 2020.
It's intended to stop dodgy practices by super funds who sneak insurance fees onto unsuspecting members with no need for these policies. Under PMIF, insurance can be offered only on an opt-in basis to members who:
- have an account balance below $6,000 (active low balance accounts); and/or
- are under the age of 25.
This is a great change — except, of course, for those working in dangerous or high-risk industries, where young and low-balance members are more likely to need to make use of their fund's insurance policy. For these members, the change to opt-in coverage could mean that young workers, including apprentices — and their families — wind up uninsured, and unprotected in the case of workplace injury.
To ensure these members didn't miss out on protection, super fund Cbus successfully campaigned for a "Dangerous Occupation Exemption" to the PMIF legislation, meaning that those working in dangerous occupations will remain insured by default, unless they choose to opt-out of this coverage.
This lets the fund to continue to support young members when they need it: over the 5 years to June 2019, Cbus paid out more than $60 million in death or total and permanent disability (TPD) insurance to members under 25 and their beneficiaries.
We've partnered with Cbus to bring you this information on the fund's super benefits, as well as default insurance coverage by age in the event of death or disability.