Do you, or someone you know, have a super balance less than $6,000? Read on!
New Federal government legislation - the Putting Members’ Interests First Bill – will come into effect on 1 April 2020. Building on the Protecting Your Super Package 2019, this legislation is in addition to the Protecting Your Super Package (PYSP) legislation which was designed to protect members' super savings from unnecessary erosion by insurance premiums.
The PMIF legislation will prevent super funds from providing automatic (known as ‘opt-out’) insurance to members who:
are under 25 years old and begin to hold a new product on or after 1 April 2020, or
have an account balance under $6,000.
The legislation will force funds to cancel insurance cover for members with balances of less than $6,000, unless you as the member communicates to your fund in writing that you wish to keep your insurance cover. This could mean that you – or someone you know – may no longer be covered in the event of claim.
If you have recently received communication from your super fund, you are encouraged to review it. Please ensure that you check the email address you have registered with your super fund – including your Junk mail folders – and review any messages you might have received.
You can read more about these PMIF changes at Sunsuper here or contact your superannuation fund if you are with another provider. You should consider your personal circumstances before making a decision.