The Protecting Your Super legislation focused on protecting low balance inactive super accounts and the Putting Members Interests First legislation ensures members’ super balances are not eroded by insurance premiums.
At a high level, the changes affect members:
- with account balances of $6,000 or less
- who are aged under 25
- have not elected to keep the member paid insurance they have associated with their account
- have not made a contribution or roll-in to their account for at least 16 months
If you’re directly impacted by any of these changes, we will have already contacted you or will notify you in writing so you have time to consider the changes and take action.
Protecting Your Super
The key elements of the Protecting Your Super legislation are:
- ‘Inactive’ low balance accounts will be transferred to the Australian Taxation Office if the account balance is under $6,000 and no contributions or roll-ins are received for at least 16 months
- Fees on accounts with a balance of less than $6,000 are capped at 3 percent per annum
- Insurance on inactive accounts will be cancelled unless the account holder elects to keep their insurance or reactivates their account by making a contribution or rollover.
Inactive low balance accounts transferred to Australian Taxation Office
If an account has less than $6,000 and no contributions or roll-ins have been made for 16 months or longer, the account is considered 'inactive' and the funds will be transferred to the Australian Taxation Office (ATO).
If you have an account which falls into this category you can take action to stop it from being transferred to the ATO. To 'reactivate' your account with TelstraSuper you must take at least one of these actions:
- complete and return this form to TelstraSuper
- make a contribution or roll-in to your account
- change your investment options
- change your insurance cover
- make or amend a binding death benefit nomination
- notify the Australian Taxation Office (ATO) in writing that the account is not to be considered inactive
If your account is at risk of being transferred to the ATO we will contact you so you can take action should you wish to keep your account active with TelstraSuper.
Fees on low balance accounts capped
If you have an account with a balance of less than $6,000 your fees will be capped at 3 percent per annum. Any excess fees charged above the cap will be refunded.
Insurance to be cancelled on inactive accounts
Insurance will be cancelled on accounts which are deemed 'inactive'.
Accounts that have received no contributions or roll-ins for a continuous period of 16 months are considered inactive and any insurance will be cancelled unless the member notifies us that they wish to keep this insurance.
If your account is inactive, and you’re at risk of losing your insurance, we’ll notify you in writing before cancelling your insurance. You can elect to keep your insurance or you can reactivate your account by making a contribution or rollover.
Members with TelstraSuper RetireAccess accounts can’t make a contribution but they can make an election to keep their insurance.
Elect to keep your insurance cover
Complete the online form to elect to keep the insurance cover you have now and in the future.
Putting Members’ Interests First
The Putting Members’ Interests First legislation focuses on ensuring account balances are not eroded by insurance premiums. From 1 December 2019 we introduced changes to our insurance to align with these new rules.
The changes only relate to insurance paid for by the member. They do not affect any insurance paid for by an employer.
Following these changes, insurance will be provided on an ‘opt-in’ basis for the insurance a member pays for themselves for:
- new and transferring members whose account balance is under $6,000 or
- new and transferring members who are under 25 from 1 December 2019.
To check all of the details about your super, including insurance, refer to the relevant Product Disclosure Statement and Insurance Guide.
If your insurance was cancelled on 1 December 2019
If your insurance was cancelled as a result of these changes it can be reinstated if you notify us by 28 February 2020.
By making an election your insurance, including any future insurance you apply and are approved for, will be maintained unless you advise us otherwise.
If you wish to keep your insurance cover, you’ll also need to ensure you have enough funds in your account to cover future premiums or your insurance will be cancelled. It’s important to consider the impact of your insurance premiums on your super balance as they will reduce the amount of money you have in retirement. You should consider your own personal situation to determine if having insurance cover in TelstraSuper is right for you.
You can check your insurance cover by logging in to SuperOnline or checking the TelstraSuper mobile app. TelstraSuper Financial Planning has a team of dedicated Advisers who can review any insurance cover you have and answer your questions. Phone advice about your insurance is included in your membership and won’t cost you anything extra. They can be contacted on 1300 033 166.
This information is general advice only and does not take into account your individual objectives, financial situation or needs. Before acting on any advice you should assess whether it is appropriate for you and consider talking to a financial adviser. Before making any decision or acquiring any product you should obtain and review its product disclosure statement by calling 1300 033 166.