mr john berrill - employment, superannuation & insurance issues for people with me/cfs
TRANSCRIPT
Superannuation and Insurance Issues for People with ME/CFS
September 2014
Maurice Blackburn Lawyers
Preliminary Matters
What is Superannuation?– Compulsory employment superannuation since 1992
– Employer pays 9.5% of salary into a super fund (proposed increase to 12% by 2025)
– Types of funds – Industry (REST, Australian Super), Government (ESSS, VicSuper, PSS), retail (AMP,AXA)
– Choice of Fund
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What benefits are available
– TPD Benefits – what are they?– TTD benefits – what are they?– Account Based cover– Multiple claims?
• Yes for TPD• No for TTD/ Income Protection
– Making a super claim• When should I claim?• How do I lodge the claim?• What if my claim is rejected?• Ombudsman schemes (SCT & FOS) and courts
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What does your Statement say?
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What does your Statement say?
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What does your Statement say?
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What does your Statement say?
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Hesta- Life Events
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Early Access to Super
• Early Access Provisions Financial Hardship - Centrelink Payments
Over 55-60 - Centrelink Payments
Palliative care, funeral, medical, transport and home or modification expenses
To prevent a mortgagee sale of your home
Permanent incapacity for work
Terminal Illness
Leaving Australia (temporary residents)
Preserved amount less than $200
• Accessing super can affect your insurance entitlements make sure you get advice
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Super and Bankruptcy
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A payment from a regulated super fund is exempt from creditors, so long as
the payment to the member occurs AFTER the date of bankruptcy. (see
s.116 Bankruptcy Act). This includes any insurance benefit that is paid by a
super fund.
It is important to ensure that wherever possible, a payment to a member
occurs after the date of bankruptcy, otherwise they could lose some or all of
the money to creditors.
AFSA disagrees with the above - currently
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Getting Insurance cover
Applying to an insurer can include health questions, duties of disclosure
and/or exclusions
Group Insurance/Auto Cover
• Employment Super
• Employer Schemes
• Industry Schemes
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Terminal Illness Claims
• July 2007 legislative amendments
• Later changes made by Super Funds/Insurers
• Diagnosis and difficulties with Terminal Illness claims
• How long does a terminal illness claim take?
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Superannuation – Death claims
• Superannuation Death Benefits– What are Super Death Benefits?
– Binding and non-binding nominations
– Who can make a claim? • Spouse, • de facto (including same-sex couples)• children, • financial dependants, • interdependents, • deceased’s estate
– What if my claim is rejected? • SCT – 28 day time limit
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Different Types of insurance
– Many different policies on the market and they vary greatly• Income Protection• mortgage protection• consumer credit, • trauma, • term life, • sickness, • Accident• critical illness
– What if an insurance claim is rejected?
• FOS or Court
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Changes to Super
• MySuper– low cost default option
– Must include disability insurance
– Disability insurance required to have a definition similar to the early release provisions
– Auto-consolidation – losing insurance cover potentially
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Questions?
John Berrill, Partner, Maurice Blackburn Lawyers.
Ph: 1800 196 050
Email: [email protected]
Email: [email protected]
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