Insurance in Super – regulatory update
Insurance in Super voluntary Code of Practice
The Insurance in Super industry has been working collaboratively on a voluntary Code of Practice in recognition of the important role insurance in super has as a safety net of cover for Australians. This is a Code with obligations upon trustees relating to insurance for all members - for members that receive cover automatically as well as those members that apply for cover. OnePath Custodians as the Trustee for ANZ Smart Choice Super (offered through the OnePath MasterFund) was the first Retail superannuation provider to opt-in to this Code.
Download the ANZ Insurance in Super Code of Practice (PDF 311kB) for regular updates on our Code implementation, such as the recently-published Transition Plan, a copy of the Code and our earlier opt-in to the Code.
Protecting Your Super reforms - proposed insurance changes not yet law
In the Super Insights November 2018 edition, we flagged the changes to Insurance in Super that have been proposed in the 2018 Federal Budget as part of the Protecting Your Super Bill. These changes would mean that members with low balances or those that have not received a contribution or rollover in some time may lose their default insurance cover from 1 July 2019.
To become law, the Bill still needs to pass through Federal Parliament and as this has still not occurred, there is a possibility that the proposed changes may be delayed, changed or may not even occur.
We will continue to monitor this throughout the coming months and provide updates to you in future editions of Super Insights. If the changes become law and your insurance cover is impacted, we will contact you to explain the changes further and describe how you can elect to maintain your insurance cover through your super.
Have your personal circumstances changed?
If so, have you told us? Because it may mean that you are no longer insured.
This information applies to all members of ANZ Smart Choice Super who have insurance with OnePath Life Limited (OPL). You can refer to your Welcome Statement, Additional Information Guide, Insurance Guide or any subsequent insurance letters issued to you for details of the Insurer that provides your insurance cover.
If you are insured by OnePath Life Limited, did you know that even though you may have continued to pay your insurance fees, a change in your personal circumstances may mean that you are no longer covered? It is important that you continue to advise us of any changes in your personal or working circumstances.
For instance, if one of the following applies to you, you may no longer be covered:
- Have you permanently retired from the workforce?
- Have you commenced active service in the defence forces of any country?
- Are you a visa holder, and has your visa expired?
- Have you transferred your entire balance to the Pension division of ANZ Smart Choice Super and Pension?
- Have you transferred your entire balance from ANZ Smart Choice Super and Pension to ANZ Smart Choice Super for employers and their employees or vice versa?
- Were you not at work* on the day that your cover commenced?
- Have you permanently departed Australia?
- Have you notified us of a change in address?
Please make sure that you contact Customer Services on 13 12 87 to advise us of changes in your circumstances or for further information. To avoid being charged Insurance fees for cover that you are ineligible for, please ensure that you notify us if you are ineligible or contact us if you would like to discuss whether you are eligible for default cover.
*If you hold insurance cover under a Tailored employer plan insurance arrangement insured by OPL, your default cover is subject to a Pre-Existing Condition Exclusion if you were not at work at the time your default cover started. If you return to work and are at work for 30 consecutive days, the Pre-Existing Condition Exclusion will be removed from your default cover on the day immediately after the expiry of this 30-day period.
Alternatively, if you hold cover under a Standard employer plan insurance arrangement insured by OPL and you are not at work on the day your Lifestage cover starts, the Insurer will provide the Lifestage cover as New Events Cover only until you have been at work for at least one day. For insurance arrangements provided by other insurers, you should refer to the relevant Insurance Guide you received upon joining, or any subsequent letters, for the ongoing eligibility requirements you need to satisfy to retain your insurance cover.
If you hold insurance cover under a Tailored employer plan that is insured by an insurer other than OPL, you should refer to the Insurance Guide issued upon joining, or any subsequent communications issued by us.
Have you checked your insurance details?
This information is only applicable to members of ANZ Smart Choice Super for employers and their employees.
Check your insurance cover to ensure it has been set up correctly, including: gender, occupation, age, salary (if applicable), types of insurance and sum insured.
If you hold cover that has not been underwritten, for example, either Lifestage cover or Default cover, any future change in your occupation may affect your eligibility. To notify us of a change to your occupation please contact Customer Services on 13 12 87.
If you’re not sure, you can refer to your Welcome Statement, Additional Information Guide, Insurance Guide or any subsequent insurance letters issued to you for details of your insurance cover.
Insurance arrangements outlined in this section are of a general nature, but where they only relate to a specific Insurer, such as OnePath Life Limited, this will be shown.
What happens to your insurance cover when you leave your employer?
If your insurance cover is provided by an insurer other than OnePath Life Limited (OPL), your cover will not automatically continue upon leaving your employer.
If you wish for your cover to continue:
- you may need to apply for the Continuation Option if available (which may apply only to some types of cover provided through the employer plan), and
- apply within the time specified by the life insurer – generally within 60 days of your employment ceasing, or
- you can apply for new cover with OnePath Life Limited.
For more information, please refer to the Product Disclosure Statement (PDS) you received when you joined your employer’s super plan or call Customer Services on 13 12 87 and we can assist you with either the appropriate form to exercise the Continuation Option, or to apply for new cover with OnePath Life.
If you leave your employer and you were a member of a Tailored insurance arrangement with OnePath Life Limited
If your employer notifies us that you have left employment with them, your account will no longer be linked to your employer and any Default and Voluntary cover will be converted to a fixed amount of Choose your Own cover. The amount of Choose Your Own cover will be equal to the amount of Default cover plus any Voluntary cover you held at the time of ceasing employment. From then, your insurance fees will be calculated in line with the Choose Your Own cover basis. We will write to you, outlining the details of your new cover.
If you leave your employer and you were a member of a Standard insurance arrangement with OnePath Life Limited
If your employer notifies us that you have left their employment, your account will no longer be linked to your employer and any Lifestage or Choose Your Own cover you hold will continue from the date you are transferred out of the employer arrangement (i.e. delinked from the employer plan). From then, your insurance fees will be calculated in line with either Lifestage or Choose Your Own cover, depending on the cover type you held at the time of ceasing employment.
You can use your ANZ Smart Choice Super account with your new employer by using the Choice of Superannuation Fund Form (PDF 163kB). You can obtain a prefilled form via ANZ Internet Banking or by contacting Customer Services on 13 12 87.
Updates to Product Disclosure Statements
The Product Disclosure Statements (PDSs) for the ANZ Smart Choice Super suite of products* issued on 17 March 2018 have been amended for information related to fees and costs, with effect from 7 December 2018.
The PDS updates are available online and can be downloaded from anz.com/smartchoice or by clicking on the links below:
*The ANZ Smart Choice Super suite of products consists of ANZ Smart Choice Super and Pension, ANZ Smart Choice Super for employers and their employees and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees (together “ANZ Smart Choice Super”). ANZ Smart Choice Super and Pension is a retail product issued pursuant to the PDS dated 17 March 2018. ANZ Smart Choice Super for employers and their employees and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees are both MySuper compliant employer products issued pursuant to separate PDSs dated 17 March 2018.
Did you know?
You can access all your ANZ Smart Choice Super account information, including opting in for electronic communications, via ANZ Internet Banking.
You can also:
- check your balance and transactions
- track performance over time
- view how your super is invested
- compare investment options
- check your insurance cover
- nominate or manage beneficiaries
- round up your super in a few steps, and
- elect to receive your statement and communications electronically.
If you need assistance setting up online access, call 13 12 87.
Are your contact details up to date?
It is important that you stay in touch with us and keep your account active, so you do not become ‘lost’.
You may be classified as a ‘lost member’ if:
- we have made one or more attempts to send written communications to you at your last known address, and we believe on reasonable grounds that you can no longer be contacted at any postal or email address known to us, and
- you have not contacted us (by written communication or otherwise) within the last 12 months of your membership of the Fund, and
- you have not accessed details about your account online within the last 12 months of your membership of the Fund, and
- we have not received a contribution or rollover from you, or on your behalf, in the last 12 months of your membership of the Fund.
If you are a member of ANZ Smart Choice Super for employers and their employees or ANZ Smart Choice Super for QBE Management Services Pty Ltd for employers and their employees, you may additionally be classified as ‘lost’ through inactivity if:
- you have been a member for longer than 2 years, and
- we have not received a contribution or rollover from you, or on your behalf, in the last 5 years of your membership of the Fund.
We are required to report all forms of ‘lost members’ to the Australian Taxation Office (ATO). Additionally, we are required to transfer a lost member’s account to the ATO if:
- the account balance is less than $6,000, or
- we have insufficient records to pay an amount to the member.
If your account does become ‘lost’ and paid to the ATO you will lose any insurance cover associated with the account, and you will need to contact the ATO about payment options.
In the 2018/19 Federal Budget, the government proposed changes to supplement the current regime for transferring lost member balances to the ATO, to protect members with low balances.
From the 2019/20 financial year, the government proposed that superannuation funds will be required to transfer inactive accounts (i.e. no contribution has been received within the last 13 months) with balances below $6,000 to the ATO. In addition, the ATO will be able to consolidate the amount with an active account of the member, where the balance of the consolidated account is $6,000 or more.
These proposed changes are yet to be legislated and may be subject to change during this process.
If you have not provided your phone number or email address, you can do so via ANZ Internet Banking, or by calling or emailing us.