Under new laws introduced by the Federal Government super funds cannot provide insurance on members’ accounts unless specific instructions are received from the account holder or an exception applies (eg. the 'dangerous occupations exception' applies).
The Putting Members’ Interests First (PMIF) legislation 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. The new laws take effect on 1 April 2020 but members may need to take action before this date to ensure they make an informed decision about whether or not to maintain their insurance in super.
Hostplus has taken a snapshot of account balances as at 1 November 2019. Members with an account balance of less than $6,000 will be notified in writing that if their account balance remains below $6,000 for the entire period on and from 1 November 2019 up until 1 April 2020, their insurance cover* will be cancelled unless they elect to maintain their cover in writing before 1 April 2020. Impacted members will have until 1 April 2020 to submit an election to maintain their insurance cover to Hostplus.
Members joining Hostplus on and from 1 April 2020 will not be automatically provided with insurance cover upon joining. Instead, members will need to opt-in to receive the default cover as part of their online application or via paperwork provided with their Welcome Pack. Members who do not opt-in to receive default cover when they join will be provided with insurance automatically on the first date that they are both aged 25 or above and their account balance is $6,000 or more.
New members under the age of 25 should be mindful that from 1 April 2020 they will need to opt-in to receive a default level of cover to obtain default insurance regardless of their account balance. Members will only be provided with default cover automatically once they reach age 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.
Up until 1 April 2020, the law requires that default death and total and permanent disability insurance is provided to all new members invested in a MySuper product, unless the member opts-out. Both the Hostplus PDS and information contained in your Welcome Pack provides details of this insurance cover. The Hostplus PDS is available here.
We contacted you because your account balance was less than $6,000 as at 1 November 2019. If your account balance remains below $6,000 for the entire period on and from 1 November 2019 up until 1 April 2020 and you do not contact us to elect to maintain your insurance then we will cancel your insurance on 1 April 2020 as required under PMIF.
If the notice is from another fund, contact that fund directly for more information.
Hostplus has contacted all members who may be affected by PMIF via post or email to explain the impact of the PMIF changes. If you have not received this information and you think you may be affected by PMIF you may need to update your contact details.
To update your details, login to your Member Online account. If you are concerned your insurance may be cancelled, please use the Election to maintain insurance cover - low balance online form to elect to maintain your insurance. An election can also be made online under the personal Details tab of your Member Online account.
If you are a member prior to 1 April 2020 and decide that you wish to maintain your insurance cover even if your account balance remains below $6,000 for the entire period from 1 November 2019 up until 1 April 2020, visit PMIF OPT IN and complete the Election to maintain insurance cover - low balance online form. Your election to maintain cover will mean that your insurance cover will not be cancelled as at 1 April 2020 as a result of the PMIF changes.
You can also request a paper copy of the Election to maintain insurance cover - low balance form by calling us on 1300 467 875 or sending us an email request to firstname.lastname@example.org or contacting us online.
To ensure you maintain any automatic cover you have through Hostplus we must receive your election before 1 April 2020.
Please note: Separate legislation passed in March 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 maintain their cover with Hostplus. To read more about the way inactive accounts are impacted, please click here.
If your insurance is 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 have had their insurance cover cancelled on 1 April 2020 because their account balance has not reached $6,000 during the period on and from 1 November 2019 until 1 April 2020 will 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, and any cover you have instructed us to cancel, will not recommence automatically.
If you wish to have insurance through Hostplus again in the future, you can choose to apply for cover. This 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.
Yes, all members with an account balance less than $6,000 as at 1 November 2019 will receive communication before 1 December 2019 advising of the PMIF changes. Members joining Hostplus after this date will receive information about PMIF in their Welcome Pack. You can also keep up to date with the current balance of your account through your Member Online facility.
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.
It’s important to know that if your account balance was less than $6,000 on 1 November 2019 and you want to ensure you maintain any cover you transfer into Hostplus on and from 1 April 2020, you will still need to make an election to maintain your cover. Information about how to make an election is set out in the answer to the 'How do I keep my insurance?' question above.
The benefits of insurance through Hostplus include:
You can review or change the insurance you currently hold through Hostplus via Member Online.
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 financial advice.
Click here 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 can also access a no obligation fact-finding session with one of our financial planners. Following which, you may wish to seek independent financial advice before you make a decision about your insurance through Hostplus.
Under PMIF, 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*.
*Insurance cover provided through Hostplus is issued by MetLife Insurance Limited, ABN 75 004 274 882, AFSL 238096 (MetLife) and by Lloyds-Canopius Syndicate 4444 (Lloyds) to Host-Plus Pty Limited (the trustee for the Hostplus Superannuation Fund) for the benefit of members. 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.
** Additionally, Hostplus has also 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 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.
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 at www.hostplus.com.au before making a decision about whether to acquire or continue to hold Hostplus superannuation.