New Government legislation called Putting Members' Interests First restricts who can receive automatic insurance cover, that's the death and disability insurance most members receive when they join their super fund. From 1 April 2020, members with account balances less than $6,000 and those who are under 25 years will not receive insurance cover unless they tell their fund that they want cover.
Existing Cbus members who had an account balance below $6,000 on 1 November 2019 have been sent a letter advising them of these changes to the law and that they need to tell us in writing before 1 April 2020 if they want to have cover. These members can complete the online form if they want to keep their insurance cover or have it start when they become eligible.
Member’s impacted by the changes whose account balance reaches $6,000 at any time after 1 November and before 1 April 2020 will not have their cover cancelled.
Any members who join Cbus after 1 November 2019 will also receive a letter informing them about the changes to the law so that they can make an informed choice about whether they need insurance cover.
Members who join Cbus from 1 April 2020 will not be automatically provided with insurance cover if they are under age 25 or have less than $6,000 in their account unless they opt-in for default cover when joining. Insurance cover will automatically be provided when a member’s account balance reaches $6,000 or more and they turn 25 years of age. The rules about when their cover will commence and the type of cover they receive will be set out in the Product Disclosure Statement relevant to their membership and the Insurance Guide.
From 1 April 2020 new members under the age of 25 will need to opt-in to receive default insurance cover regardless of their account balance. Once a member’s account reaches $6,000 or more and they are aged 25 years or older automatic insurance cover will be provided. The rules about when their cover will commence and the type of cover they receive will be set out in the Product Disclosure Statement relevant to their membership and the Insurance Guide.
The protection Cbus cover provides to workers in building and construction is important where serious injury and even death are real risks. These changes to the law provide you with the opportunity to consider what cover is right for you, the impact insurance costs can have on your retirement savings and to check if you have insurance cover with more than one super account. If you make an election to opt in and you change your mind you can decrease or cancel your insurance at any time via your Member Online account.
Cbus has been able to continue to provide automatic insurance for eligible members aged under 25 years and members with balances below $6,000. This is achieved by applying a dangerous occupation exemption for members working in the Industry Manual occupation category as certified by the fund actuary consistent with the legislation.
We will write to members letting them know about their status and that the new laws won’t impact their access to insurance cover.
View a copy of the Dangerous Occupation Exemption election to the regulator here.
Why is Cbus insurance cover important?
Insurance cover is essential in providing financial protection and security to you and your family. Cbus is proud to offer our members insurance options that can be tailored to meet the needs of people working in the building, construction and allied industries. When you join Cbus Industry Super, most members qualify for our default level of Death and Total and Permanent Disablement (TPD) cover.
We also offer eligible members access to higher levels of cover appropriate to your circumstances and needs, as well as Income Protection cover for Professional and Non-manual occupations.
The cost of insurance is paid direct from your super account, so you won't need to budget to make insurance payments provided you have enough money in your super account.
Before making a decision regarding your insurance arrangements, please consider what insurance is right for your circumstances and the impact insurance premiums can have on your account balance.
Where can I go for help?
Super can be complex. If you have a question about your cover or would like help to understand what all this means, call Cbus Advice Services on 1300 361 784 (press 4 to speak to an adviser). You can also speak to a local Cbus Coordinator for face-to-face support – contact details are at cbussuper.com.au/coordinators
ASIC Money Smart can also provide information about the benefits and risks of insurance as well as the broader impacts of paying for more death and disability insurance cover than you might need.
An account is inactive if it hasn’t received any contributions or rollovers for a continuous period of 16 months or more. If your Cbus account is classified as “inactive” then from 1 July 2019 onwards, any insurance cover you have will cease.
Unless you opt-in to retain your insurance cover, existing Death and TPD cover may stop if, in the past 16 months:
This will happen regardless of your account balance, which is a change particularly for Cbus Industry super members, who used to have a $1,200 lower limit. Full details can be found in your Cbus Insurance Guide.
Depending on your membership category, in some circumstances, some or all of your cover may restart if contributions start again.
Consider what insurance cover is right for you and how insurance premiums can affect your account balance. You must opt-in if you want to keep your insurance during a period of inactivity. You can make a contribution or a rollover to remain active.
Cbus Death and TPD insurance is designed for workers in the building and construction industries, including those working with heights and in hazardous environments.
Eligible members receive automatic Death cover until age 70.
In 2018/2019 Cbus paid out over $246 million in insured benefits.
What is an “inactive” account?
An account is inactive if it hasn’t received any contributions or rollovers for a continuous period of 16 months or more. If your Cbus account is classified as “inactive” then from 1 July 2019 onwards, any insurance cover you have will cease. This is regardless of your account balance.
How do I keep my insurance cover if my account becomes “inactive”?
If you would like to retain your insurance cover you can either click here or complete a Keep my insurance cover form.
What happens if my account becomes “active” again?
If you are an Industry Super Member and your insurance cover stops because your account has become inactive and then you start to receive on-time employer contributions again, your Death and TPD insurance will restart. However, you may get a different cover amount than you had before depending on how long it has been since your cover stopped. You can find out more by reading the Death and disability insurance guide for Industry Super.
If you’re a Personal Super Member and your insurance cover stops because your account has become inactive then your cover will stop and you’ll need to re-apply to the insurer for cover if you start to make contributions. If you start to receive employer contributions then you’ll be transferred to Industry Super. You can find out more by reading the Insurance Guide Personal Super.
If you’re a Sole Trader Member and your insurance cover stops because your account has become inactive and then you start to receive contributions, the type and amount of cover you receive will depend on where the contribution came from, i.e. from you or an employer. Income Protection cover will not restart but it can be applied for. Your Death and TPD cover may be different than you had before depending on how long it has been since your cover stopped. You can find out more by reading the Insurance Guide for Sole Traders.
What if I don’t need insurance anymore or have it somewhere else?
We believe our members should have insurance cover to protect themselves and their families. But if it’s not right for you, you can reduce or cancel some or all of your cover whenever you like. If you change your mind and want cover later, you’ll need to provide information about your health for the insurer to consider, and you may not qualify for cover. Give us a call if you’d like some advice before you make any changes. To reduce or cancel your cover fill in this form or log into your online member account.
Super funds are now required to transfer the accounts of certain members to the ATO. This could apply to you if:
When accounts are transferred to the ATO, they attempt to unite them with other super accounts you may hold.
*For transfers to the ATO, this means that you have less than $6,000 invested in the Growth (Cbus MySuper) or other investment option which has not received a contribution or rollover in 16 months.
You should consider your personal financial circumstances, including the impact of fees on your account balance, but if you decide you wish your super to remain with Cbus, here are three simple things you can do:
1. Consolidate your super
If you would like to keep Cbus as your main super fund and stop it going to the ATO, one way to do so is to roll in money that you have with other funds. You should check whether you rolling money from another fund will impact any entitlements such as insurance cover. Further information on making contributions available on the Cbus website.
2. Make a small personal contribution
If you would like to keep your super with Cbus and stop it going to the ATO you can simply make a small personal contribution. You can keep your super at Cbus by making a contribution as little as $5.
The limits for personal (after-tax) contributions for the 2019/20 financial year are $100,000 per year or up to $300,000 over a three year period. If you contribute over these limits you may pay additional tax. There is more information available on how to make contributions and the various tax implications.
Payment by EFT Transfer
Account Name: CBUS Super Fund
BSB: 083-355
Account Number: 673909657
Reference: your member number
Direct Debit
Download the Direct Debit form from the Cbus website and send to Cbus for regular payments.
Personal Contribution Form
Download the Personal Contribution form for cheque payments and send to Cbus.
3. ATO declaration form
If you would like to keep your super with Cbus and stop it going to the ATO simply fill in the form and send to:
Cbus
Locked bag 5056
Parramatta
NSW 2124
It's important to note the declaration that a member is not an inactive, low balance account member lasts only for 16 months.
A fee cap of 3% now applies to certain accounts. You might be eligible to receive a fee cap refund in excess of the cap at the end of the financial year or when you exit Cbus if you have:
The fee cap includes the total combined amount of administration fees, investment fees and other costs not directly charged to members as a fee and which relate to the administration of investment of the assets of Cbus.
Super funds will no longer be able to charge exit fees. You can withdraw your money or consolidate super funds without paying exit fees to access your money or transfer your superannuation to another superannuation fund.
