SEN about insurance - March 2020
A snapshot of Putting Members' Interests First (PMIF)
Significant Event Notice, 19 March 2020
From 1 April 2020, the Federal Government’s new PMIF legislation will be introduced into Australia’s superannuation system. The changes have been made to encourage super members to consider whether the insurance they have with their super fund is right for their needs.
What do the changes mean for our current LUCRF Super members?
The new legislation means that a member’s insurance cover will automatically be cancelled on 1 April 2020 if their super or pension account balance was below $6,000 on or after 1 November 2019 unless a member tells us that they’d like to keep it.
LUCRF Super members who met this criteria were sent an information pack about the PMIF changes dated 29 November 2019.
If a member’s account balance goes to $6,000 or above at any time before 1 April 2020, their insurance will not be cancelled.
Members who would like to keep their insurance with us, but have less than $6,000 in their account, have been given the option to tell us in writing before 31 March 2020.
If your insurance is cancelled on 1 April 2020, you have until 31 May 2020 to apply to recommence that cover on the same terms. However, you’ll have a gap in cover between 1 April 2020 and the date that we accept your application.
What do the changes mean for people who join after 1 April 2020?
New members who join LUCRF Super after 1 April 2020 will no longer automatically receive default insurance cover. Further information for new members who join after 1 April 2020 is detailed in our Super Member Guide – Product Disclosure Statement (PDS) and Insurance Guide (which forms part of the PDS).
Dangerous occupation exception
An exception to the PMIF reforms is when the ‘dangerous occupation exception’ applies to a member engaged in a nominated dangerous occupation.
At this point in time, LUCRF Super hasn’t applied for this exception. This means that the PMIF reforms will extend to our members even if they work in a dangerous occupation. If we change our position, we’ll write to those members who might meet the ‘exception’ criteria. We’ll also post information to our website.
The PMIF changes apply to each super account a person holds. This means that if a member has more than one account with LUCRF Super or with another super fund, they could have multiple insurance policies that could get cancelled. Information about our insurance is available here.
|Our insurance changes driven by pmif|
|Cancellation of cover||Current arrangements to 31 March 2020||New arrangements from 1 April 2020|
|Cancellation of cover due to PMIF||Doesn't apply||Members whose account balance has never been $6,000 or above from 1 November 2019 to 31 March 2020 and haven’t elected to continue their cover, will have their cover cancelled on 1 April 2020.|
|Recommencement of cover||Current arrangements to 31 March 2020||New arrangements from 1 April 2020|
|Cover ceased due to PMIF changes||Doesn't apply||Members whose cover is cancelled on 1 April 2020 due to the PMIF changes will|
have an option to recommence their cover by completing an application form, and
having a valid application form accepted by LUCRF Super, before 31 May 2020.
If accepted, the cover will recommence from the date the application is accepted.
There will be a gap in cover between the dates the cover was cancelled and the
date the cover recommenced.
A member won’t be eligible to claim for an event within this gap period.
This notice explains the changes that will be made to the insurance arrangements of the Labour Union Co-operative Retirement Fund, ABN 26 382 680 883 (LUCRF Super) from 1 April 2020. The current arrangements are described in the LUCRF Super Super Member Guide – Product Disclosure Statement (PDS) dated 1 October 2019 and Insurance Guide (which forms part of the PDS) dated 1 July 2019, both issued by the Trustee of the Fund, L.U.C.R.F Pty Ltd, ABN 18 005 502 090, AFSL 258481, available at lucrf.com.au.
You should read the information in this Significant Event Notice (SEN) in conjunction with the PDS and the Insurance Guide to understand how these changes will affect your insurance cover on 1 April 2020 and in the future. These changes will be incorporated into subsequent releases of the PDS and our Insurance Guide, now available.
This is general information only and has been prepared without taking into account your personal financial situation, objectives or needs. General information is not advice. You should assess your personal financial situation before making a decision about LUCRF Super. To help you decide we recommend you read our current Financial Services Guide (FSG) and Product Disclosure Statement (PDS).