Sometimes things in superannuation change.

Changes occur in superannuation on a regular basis and information in our Member Booklets (Product Disclosure Statements) and Member Booklet Supplements may need to be updated from time to time. We use this section to inform members about changes to the information in these documents, which are not materially adverse.

Update to current information

Document Reference: Member Booklet and Member Booklet Supplement
Member Booklet: Police Blue Ribbon Super – dated 1 July 2015
Member Booklet Supplement Insurance: Police Blue Ribbon Super - dated 1 July 2015

Eligible NSW police officers receive death, terminal illness, total and permanent disablement and income protection insurance cover under Police Blue Ribbon Insurance. Police Blue Ribbon cover is provided under life insurance policies issued to the trustee of First State Super by TAL Life Limited ABN 70 050 109 450, AFSL 237848.

The following explains changes which were made to Police Blue Ribbon income protection insurance cover on 1 October 2015. Payment of a benefit is subject to the policy terms and conditions. 

If you have other insurance cover as a member of First State Super, the below does not apply to your other First State Super cover.

Police Blue Ribbon income protection cover

The Member Booklet Supplement: Insurance (Police Blue Ribbon Super) explains Police Blue Ribbon income protection cover.

Briefly, if you are covered, and suffer an illness or injury for which you are eligible to receive a monthly income protection benefit, you must first be disabled for a waiting period. There is also a maximum period during which the monthly benefit is paid, called the benefit period. Both the waiting period and the benefit period depend on whether you are on duty or off duty when the illness or injury for which you are eligible to claim occurs, as explained in the Member Booklet Supplement.

If you are eligible to claim a Police Blue Ribbon income protection benefit, and your waiting period begins on or after 1 October 2015, important changes apply to your benefit.

Benefit indexation

If your claim is due to illness or injury suffered while you were on duty, and your monthly benefit is payable continuously for more than 12 months, your monthly benefit will be indexed on each anniversary of the date your benefit period started. This means that, if the waiting period for your claim began on or after 1 October 2015, your monthly benefit will increase by the Consumer Price Index or 5% (whichever is less) each year while your monthly benefit continues to be paid during the benefit period.

Indexing your monthly benefit in this way helps ensure that the purchasing power of your benefit is not eroded by inflation over time.

Recurrent disability

If you return to work after a period during which you received a monthly income protection benefit for less than the benefit period, and you are eligible to claim again due to the same or a related illness or injury (recurrent disability claim), the waiting period reduces for the recurrent disability claim. If your recurrent disability claim occurs:

  • within six months after the end of the earlier claim, the waiting period reduces to zero
  • six months or more after the end of the earlier claim, the waiting period reduces to 30 days.

The first claim period, and each recurrent disability claim period, are added together when determining your benefit period.

The reduction in the waiting period, if your recurrent disability claim occurs six months or more after the end of the earlier claim, is an improvement in your benefit which only applies if the waiting period for the first claim begins on or after 1 October 2015.

Document Reference: Member Booklet and Member Booklet Supplement
Member Booklets: Employer Sponsored, Personal, Ambulance Officers’ Super – dated 1 July 2015
Member Booklet Supplement Insurance: Employer Sponsored, Personal, Ambulance Officers’ Super - dated 1 July 2015

Income protection cover is provided under a life insurance policy issued to the trustee of First State Super by TAL Life Limited ABN 70 050 109 450, AFSL 237848.

If you have income protection cover through First State Super, the below explains the effect of amendments made to the policy under which this cover is provided.

These amendments were agreed with the trustee to clarify the policy terms, rather than change the benefits provided, and they apply from 30 June 2016.

If you have other insurance cover as a member of First State Super, the below does not apply to your other First State Super cover.

The income protection cover available through First State Super is explained in more detail in the Member Booklet Supplement: Insurance (Employer Sponsored), if you are an employer sponsored member, or the Member Booklet Supplement: Insurance (Personal), if you are a personal member. Payment of an income protection benefit is subject to the policy terms and conditions.

Recurrent disability

If you have income protection cover and suffer an illness or injury for which you are eligible to receive a monthly benefit, you must first be disabled for a waiting period. There is also a maximum period during which the monthly benefit is paid, called the benefit period.

If you return to work after a period during which you received a monthly income protection benefit for less than your benefit period, and you are eligible to claim again due to the same or a related illness or injury (recurrent disability claim), the first claim period, and each recurrent disability claim period, are added together when determining your benefit period.

If your recurrent disability claim occurs within six months after the end of the earlier claim, the waiting period for your recurrent disability claim reduces to zero.

If your recurrent disability claim occurs six months or more after the end of the earlier claim, the waiting period applies again to your recurrent disability claim.

Document Reference: Member Booklet Supplement
Member Booklet Supplements: Tax and super – dated 20 August 2016, page 1; and How super works – dated 20 August 2016, page 5.
 

The Member Booklet Supplements above disclose the following regarding the government’s announcement about a new lifetime non-concessional cap:

“The government has announced that from 7.30 pm (AEST) on 3 May 2016, a new lifetime non-concessional cap of $500,000 will apply to everyone up to age 75. This will replace the current annual non-concessional cap of $180,000 and the bring forward provision available to members under age 65. At the time this information was prepared, this proposal was not yet law. For details of the proposed changes, please refer to treasury.gov.au.”

Since issuing the Member Booklet Supplement, the government has announced that it will no longer implement the proposed lifetime non-concessional cap of $500,000.

Read more information on the superannuation-related budget announcements.


Document Reference:
Member Booklet and Member Booklet Supplement
Member Booklet: Income Stream – dated 15 August 2016, pages 17, 25 and 26.
Member Booklet Supplement: Investments – dated 20 August 2016, pages 7, 14 and 15.

The Member Booklet and Member Booklet Supplement above currently state that “socially responsible investment screening applies to the Australian and international equities asset classes only”.

From May 2017, we have extended our positive and negative screens to all the Diversified SRI option’s asset classes. The asset allocation ranges of the Diversified SRI option have also changed. The new allocations took effect from May 2017. The old and new allocations are shown in the table below:

Diversified SRI option Old New

 

Target

Range

Target

Range

Australian shares SRI

26%

16%-36%

26%

16%-36%

International equities SRI

30%

20%-40%

24%

14%-34%

Alternatives

24%

4%-44%

26%

6%-46%

Fixed income

10%

1%-20%

18%

8%-28%

Cash (for transactions)

10%

1%-45%

6%

1%-36%