Significant event notices and industry news

Significant event notices and industry news

 

 

Fee increase from 1 July 2010

 

As an industry super fund, Health Super is run solely to benefit members. Accordingly, we only charge what is necessary to provide members with quality financial products and services. In order to continue doing so, the Trustee of Health Super has found it necessary to increase the weekly account-keeping fee on Accumulation accounts by 25 cents per week from $1.50 to $1.75. The increase will come into effect commencing 1 July 2010. This $13 per year increase will allow the ongoing provision of leading products and services to members while ensuring Health Super remains a value-for-money super provider. For further information about Health Super's fees and costs, please refer to the Health Super Accumulation Member Guide (Product Disclosure Statement), a copy of which can be found on our website at healthsuper.com.au or by phoning 1800 331 719.

 

Merger of duplicated accounts

 

To improve administrative efficiency, the Trustee has recently taken steps to minimise the incidence of duplicate accounts within the Fund. In summary, under the Health Super Trust Deed, there are two separate divisions under which an Accumulation account may be operated for members. The Trustee has amended the Trust Deed to allow for the merger of these accounts so that, going forward, members of Health Super who joined via a registered employer can have a single account after ceasing employment with that employer. The effect of this change is purely administrative. Benefits, fees, investment arrangements and insurance arrangements will remain the same.

 

Continued insurance cover for Health Super members who cease employment with a registered employer

 

At present, upon joining the Fund, Accumulation account members who are employed by a registered employer are entitled to an automatic level of Death, Total & Permanent Disablement (TPD) and Income Protection (IP) insurance.

 

If an existing Accumulation account member ceases to be employed by a registered employer and does not recommence employment with another registered employer, the member can retain their automatic units of Death and TPD cover, however their automatic IP cover stops on ceasing to be employed by a registered employer.

 

We have negotiated a number of changes to our group life and group income protection policies held with AIA Australia. Under the new arrangements:

 

• If a Health Super Accumulation account member makes a TPD claim and has worked less than 15 hours per week (averaged over three consecutive months before claiming), Health Super and AIA Australia will make an assessment of the claim against a member's additional cover (if any) under the 'Activities of Daily Living ' definition.

 

• If a Health Super Accumulation account member has Death and/or TPD cover and is unemployed for three months or more, any TPD claim (both automatic cover and any additional cover) will be assessed by Health Super and AIA Australia against all of your cover under the 'Activities of Daily Living' definition.

 

• If a former Health Super Accumulation account member of a registered employer wishes to re-apply for Death and TPD insurance cover and is not employed by a registered employer, the member will be required to provide AIA Australia with satisfactory health or other evidence before their application is determined.

 

• If a Health Super Accumulation account member recommences employment with a registered employer and that member is eligible for automatic insurance cover, the member will once again be eligible to receive the automatic level of Death, TPD and IP insurance cover. This will replace any automatic cover granted previously but does not replace any additional cover the member may have elected to maintain or any cover (above the automatic acceptance level) previously accepted by AIA Australia after leaving their first registered employer.

 

These new arrangements will apply to all members who claim under Health Super's group insurance policies with AIA Australia after 1 July 2009.

 

Please note - the definition of 'Activities of Daily Living' can be found on page 49 of the Health Super Member Guide, a copy of which can be found on our website at healthsuper.com.au. Alternatively, you can request a hard copy of our Member Guide by calling 1800 331 719.

 

Illegal Early Access (IEA) to super

 

Generally, your super is not available until you reach your preservation age* and you permanently retire from the workforce. However, in some instances like financial hardship or 'compassionate grounds', you may be allowed to legally withdraw your super early, subject to satisfying certain conditions. Members may apply to the Trustee of Health Super or the Department of Human Services for the early release of their super in these types of circumstances^.

 

*Refer to the Preservation rules for more information about your preservation age.

^If Health Super considers you eligible in each 12 month period, you can claim a single lump-sum payment of up to $10,000 (gross). The Health Super Trustee will not consider any further claims for severe financial hardship if you have been paid an amount due to severe financial hardship within a 12 month period.

 

In this respect, you should be cautious of promoters of illegal schemes claiming you can withdraw your super early or use a 'self managed super fund' to pay off debts, make a deposit on a home or buy a car or holiday. These promoters deliberately mislead and target people in financial strife, retrenched workers and some ethnic communities. These promoters may also attempt to convince you to sign false statements, exposing you to fines, taxes or jail because you did not keep your super until you retire.  Fraudulent access to super is also rising where, for example, member statements are being stolen from private mailboxes and the information in them is used to create false identities. Self managed funds linked to bank accounts are then set up with thieves requesting a member's super money be rolled into a fraudulent account.

 

If you are concerned that this may have happened to you, contact us, APRA or your local police.

 

Source: Australian Securities and Investments Commission (ASIC) at www.asic.gov.au

 

 

Lost Member accounts to be transferred to ATO in 2010

 

In accordance with the 2009 Federal Budget, the Australian Government is now preparing to implement new laws which will, amongst other things, change the 'Superannuation (Unclaimed Money and Lost Members) Act 1999' (the Act).

 

The proposed change to the Act will require super providers to transfer the balance of a 'lost' member's account to the Australian Taxation Office (ATO) where the balance of the account is less than $200 or the super account has been inactive for a period of five years and the provider is satisfied it will never be possible to pay an amount to the member (please note any accounts belonging to a lost member that support or relate to a defined benefit interest are excluded from the measure.)  Former holders of 'lost' accounts will still be able to reclaim their money directly from the ATO at any time. The initial transfer of monies from Health Super to the ATO under these new provisions is intended to occur in the 2010/11 financial year.

 

Source: The Commonwealth Government of Australia at www.comlaw.gov.au