arrow-downarrow-leftarrow-rightarrow-upcarret-downcarret-leftcarret-rightcarret-upclosedownloadenvelope-altenvelopefacebookhouseinfoinstagramjargon-busterlinkedinlocationmediamenunew-tabpencilphoneprintsearchshareticktooltiptwitteryoutube
Skip to main content

Putting Members' Interest First

Guys in a kitchen

Under new laws introduced by the Federal Government super funds cannot provide insurance on members’ accounts unless they meet certain criteria or specific instructions are received from the account holder.

The Putting Members’ Interests First legislation (PMIF) works to ensure members aren’t paying for insurance they may have forgotten about, and don’t need, and that premiums don’t inappropriately erode their retirement savings.

Who is impacted? Click on a category below to find out more.

Under the PMIF laws members who joined Hostplus prior to 1 April 2020 will have had their insurance* cover removed from their account unless their account balance reached $6,000 or more between 1 November 2019 and 31 March 2020 (inclusive) or they made an election in writing to maintain insurance cover. Existing members who lost their insurance cover on or after 1 April 2020 due to the PMIF laws, may not have cover recommence on their account until their account balance reaches at least $6,000 or the member opts-in to have cover early. Cover recommencement is subject to the terms and conditions of the relevant policy and if it has ended due to the PMIF laws you may only be able to recommence cover at default levels or subject to restricted cover conditions. Refer to your Hostplus PDS for information about how you may be able to recommence cover. The Hostplus Personal and Industry plan PDS is available here. The Hostplus Executive plan PDS is available here. If you are unsure of which PDS currently applies please refer to your welcome letter.  

Members joining from 1 April 2020 aged under 25 or with an account balance less than $6,000 will need to opt-in early via Member Online to receive default cover (ie. make an election in writing to keep your insurance cover even if your account balance is less than $6000 or you are under the age of 25). For members who don’t opt-in early, default insurance cover will commence from the first date their balance reaches $6,000, AND they are aged 25 or over. Information on how to opt-in early to cover will also be provided in your welcome pack upon joining the fund.

Members in a tailored employer executive insurance arrangement should check with their employer if they are impacted by the PMIF laws. However, generally if the employer has notified the super fund in writing that they will fund the full cost of the insurance, insurance cover will remain in place even if the balance is under $6,000 at 1 April 2020. New members joining after 1 April 2020 under an employer sponsor arrangement where the employer pays the full cost of their insurance will have their default cover commence even if they are aged under 25 and have a balance less than $6,000. It’s important to note that your insurance cover with Hostplus may be switched off when you stop working for this employer unless you have made an election to opt-in to insurance cover early or you are not affected by the PMIF laws (ie. you are over 25 and have an account balance of $6,000 or more).

Further information regarding the ‘Putting Members’ Interests First’ legislation is available on ASIC’s MoneySmart website.

Frequently asked questions

Up until 1 April 2020, the law required that default death & total and permanent disability (TPD) insurance be provided to all new members invested in a MySuper product, unless the member opts-out. Both the Hostplus Product Disclosure Statement (PDS) and information contained in your Welcome Pack provides details of this insurance cover. If you became a member of Hostplus before 1 April 2020 and made an election to maintain cover, or your balance reached at least $6,000 between 1 November 2019 and 1 April 2020 then this cover will have remained on your account on and from 1 April 2020. The Hostplus Personal and Industry plan PDS is available here. The Hostplus Executive plan PDS is available here.

To check what type and amount of insurance cover you currently have with Hostplus, log into your Member Online account. We can also provide insurance information over the phone on 1300 467 875 Monday to Friday 8am – 8pm AEST. You can also apply to increase, decrease or cancel your cover via you member online account or by contacting us in writing via email or post.

If you became a member of Hostplus before 1 April 2020 and your account balance remained below $6,000 for the entire period between 1 November 2019 and 1 April 2020 and you did not contact us to elect to maintain your insurance, your insurance cover will have ceased on 1 April 2020 as required under PMIF legislation. If your account balance reaches $6,000 in the future, automatic default cover may recommence at default values for your account type. Cover recommencement is subject to the terms and conditions of the relevant policy and if it has ended due to the PMIF laws you may only be able to recommence cover at default levels or subject to restricted cover conditions. Refer to your Hostplus PDS for information about how you may be able to recommence cover. The Hostplus Personal and Industry plan PDS is available here. The Hostplus Executive plan PDS is available here.

If you have not previously cancelled or opted out of your default cover and you wish to obtain default insurance cover, you may be able to obtain default cover by making an election to opt-in early under the insurance section of your Member Online account. For higher levels of cover you may be able to make an application to increase your cover to our insurer* via Member Online.

Please note: Separate legislation passed in February 2019 also affects insurance in super. Under the ‘Protecting Your Super’ (PYS) legislation members who are not receiving regular contributions may need to make a separate election to maintain their cover. This means some members may need to make more than one insurance election to have and maintain their cover with Hostplus. To read more about the way inactive accounts are impacted, please click here.

Yes, you can decrease or cancel your insurance at any time via your Hostplus Member Online account or by contacting us via phone 1300 467 875 or email us via Contact Us at hostplus.com.au

If your insurance was cancelled on 1 April 2020 because your account balance remained below $6,000 for the entire period on and from 1 November 2019 up until 1 April 2020, we will contact you to let you know that your cover has been cancelled. If your insurance cover is cancelled, you will no longer be charged insurance premiums and you will not be able to make a claim for insurance benefits for events or conditions that arise after your cover has been cancelled. However, it is important to note that you may still be able to claim for events or conditions that arose whilst you had insurance cover in place.

Members who had their insurance cover cancelled on 1 April 2020 because their account balance had not reached $6,000 during the period on and from 1 November 2019 until 1 April 2020 may have cover recommence at default levels on the first date that their account balance reaches $6,000 or more after 1 April 2020. Increases or variations of cover that differ from the default levels, or any cover you have previously instructed us to cancel, may not recommence automatically. Cover recommencement is subject to the terms and conditions of the relevant policy and if it has ended due to the PMIF laws you may only be able to recommence cover at default levels or subject to restricted cover conditions. Refer to your Hostplus PDS for information about how you may be able to recommence cover. The Hostplus Personal and Industry plan PDS is available here. The Hostplus Executive plan PDS is available here.

If you wish to have insurance through Hostplus again in the future, you may be able to opt-in for default cover or apply for cover. If you apply for cover your application may be subject to underwriting (which may include a full health assessment). Your application will be forwarded to our Insurer* for assessment and our Insurer will decide whether or not to provide you with cover. 

We encourage you to review your current insurance arrangements to see if they are appropriate. You may also wish to seek independent financial advice. If you hold multiple insurance policies, including certain types of cover outside of superannuation, you may be able to apply to transfer your cover to Hostplus without the need for extensive underwriting. You can begin this process by applying via your Member Online account. For more information on transferring cover please click here.
The benefits of insurance through Hostplus include:

  • Because Hostplus represents over 1 million members, we can negotiate special rates and terms that may not be available to the general public;
  • As an industry fund, we don’t allow any commissions on our premiums meaning you only pay for what the product costs; and
  • Premiums are deducted from the balance of your super, not your bank balance, so it’s easy to enjoy the peace of mind that goes with being covered, without the hassle of paying premiums from your take home pay.

You can review or change the insurance you currently hold through Hostplus via Member Online.

Visit hostplus.com.au/insurance for a range of tools and calculators that may help you to determine your insurance needs and assist you to calculate the level of cover you require. As a Hostplus member you also have access to Super Adviser** to help you get a clearer understanding of your financial objectives via a statement of limited advice. You may also wish to seek independent financial advice before you make a decision about your insurance through Hostplus.

It may also be time to consider consolidating your super accounts. Consolidation may save you from paying extra fees and potentially help you to grow your nest egg.
Before consolidating, you should consider whether consolidation is appropriate for you, including what impact it may have on your financial situation, objectives and needs. This may include considering the insurance cover or any other benefits which may be lost if you close one or more of your super accounts. Please note that consolidating into Hostplus will mean that your other super accounts outside Hostplus will be closed and you will be unable to transfer insurance cover from those accounts or claim a tax deduction for contributions made to those accounts. If you are unsure whether consolidation is appropriate, you may wish to seek independent financial advice.

For more information on Consolidation and how to consolidate, click here, or log into your Member Online account.

When a claim is submitted it is assessed based on the date the event occurred. This means that if your insurance cover has ended you may still be covered for any insurable events that happened prior to the date your cover ceased.

As a result, if you had a current claim before your cover ended because of PMIF, it will not be affected.

If, however you lose your insurance cover because of PMIF, you will no longer be covered for events that occur after the date that your cover ceases.

Under PMIF legislation, if a super fund elects to apply the 'dangerous occupation exception' the fund can continue to provide automatic insurance cover to members under 25 years of age who work in a dangerous occupation. The dangerous occupation exception only applies if the fund trustee makes an election to apply it to a member's dangerous occupation and informs the regulator (the Australian Prudential Regulation Authority).

Hostplus has decided not to elect to apply a dangerous occupation exception. However, it is important to note that members who don’t have insurance due to PMIF (either because they have an account balance below $6,000 or are under 25 years of age) and who work in a dangerous occupation can apply for cover with Hostplus at any time.  However, note that insurance cover is subject to acceptance by the Insurer*.

Some tailored insurance arrangements provide for members to have the cost of their cover paid for by their employer. If your employer covers the full cost of your insurance and meets its obligations under the tailored insurance arrangement the PMIF laws will not affect you.

If you became a member of Hostplus before 1 April 2020 and your employer did not pay the full cost of  your tailored insurance arrangements, then your cover will have ceased on 1 April if your account balance didn’t reach at least $6,000 or you did not make  an election to maintain the cover.

For example, if your account balance didn't reach at least $6,000 before 1 April 2020 and you had obtained additional cover beyond the cover that your employer pays for under the tailored insurance arrangements (eg. you pay premiums for your own salary continuance cover), this cover would have ceased unless you made an election to maintain the cover prior to 1 April 2020.

If your employer pays the full cost of your insurance cover, then you will retain your cover on and from 1 April 2020 as long as your employer continues to meet its obligations under this arrangement.

New members joining after 1 April 2020 under an arrangement where their employer pays the full cost of their insurance will generally have default cover automatically applied to their account despite having an account balance below $6,000 or being aged under 25. If your employer does not pay the full cost of cover offered under your tailored insurance arrangements, then you will only be able to obtain cover when your account balance reaches at least $6,000 and you are aged 25 or over (unless you make an election to obtain cover even if your account balance is less than $6,000 or you are under the age of 25).

If you cease working for the employer at any stage, your insurance cover will be cancelled if you have not made an election to maintain your cover and your account hasn’t reached at least $6,000, and for new members joining after 1 April 2020 -if you have not reached age 25 before you cease work.

Frequently Asked Questions for employers

As an employer you are not directly impacted by the PMIF laws, however some of your employees may be affected. Hostplus has communicated to all affected employees who are members of Hostplus and will continue to communicate with members to let them know about changes to insurance from 1 April 2020 onwards.

If you pay the full cost of all of the insurance offered to employees under an executive insurance arrangement (ie. tailored insurance) and you meet all of your obligations under the arrangement, the PMIF laws will not affect your employees.

Employees who joined Hostplus before 1 April 2020 with an account balance of under $6,000 will retain any type of cover you pay the full cost of, however any cover you do not fully pay for will cease on 1 April 2020  unless the employee made an election to maintain their cover before 1 April 2020. For example, if you paid employees' premiums for Death and TPD cover, and employees paid their premiums for Salary Continuance cover, then employees with an account balance of under $6,000 will retain their Death and TPD cover, however they will lose their Salary Continuance cover on 1 April 2020 unless they made an election to maintain this cover.

Employees joining Hostplus after 1 April 2020 under an arrangement where you pay the full cost of their insurance will generally have default cover automatically applied to their account despite having an account balance below $6,000 or being aged under 25. If you do not pay the full cost of cover offered under the tailored insurance arrangements, then employees will only be able to obtain cover when their account balance reaches at least $6,000 and they are aged 25 or over, unless the employee makes an election to obtain cover even if their account balance is less than $6,000 or they are under the age of 25.

If you have any questions, speak to your dedicated Account Manager who will be able to assist.

*Insurance provided through Hostplus is issued by MetLife Insurance Limited, ABN 75 004 274 882, AFSL 238096 (MetLife) to Host-Plus Pty Limited (the trustee for the Hostplus Superannuation Fund (Hostplus)). Cover is subject to terms and conditions and eligibility criteria. Some occupations are excluded from cover and some members may not be provided with cover or may be provided with different types and levels of default cover depending on their circumstances.

**Hostplus has engaged Link Advice Pty Limited ABN 36 105 811 836, AFSL 258145 to provide Hostplus members with the Super Adviser service which includes access to limited personal advice with respect to Hostplus products only, through a web base product called Super Blue Print. Hostplus Superannuation Advice Consultants are Authorised Representatives of Link Advice and facilitate the provision of limited personal advice about Hostplus products to Hostplus members through Super Blue Print.  Please call 1300 734 007 to obtain a Link Advice Financial Services Guide. Link Advice is responsible for any advice obtained through Super Blue Print.

Hostplus superannuation is issued by Host-Plus Pty Limited ABN 79 008 634 704, AFSL 244392 as trustee for the Hostplus Superannuation Fund ABN 68 657 495 890, MySuper No 68 657 495 890 198 (the Fund).

The information is general advice only and does not take into account your personal objectives, financial situation or needs. Therefore you should consider if this advice is appropriate for you in light of your circumstances before acting on it. Please read the relevant Hostplus Product Disclosure Statement (PDS), available atpds.hostplus.com.au for Personal and industry plan members and pds-executive.hostplus.com.au for executive plan members. . before making a decision about whether to acquire or continue to hold Hostplus superannuation.