Putting Members’ Interests First (PMIF) FAQs

On 1 April 2020, the Federal Government’s Putting Members’ Interests First (PMIF) legislation will come into effect. PMIF aims to improve the retirement outcomes for super fund members by ensuring they aren’t paying insurance fees for cover they don’t need or want.

These laws affect you if you have standard insurance cover and a balance less than $6,000. If your employer is responsible for paying your standard insurance fees, you may also be affected in the future if you become responsible for paying the fees. If you’ve recently joined but your insurance cover doesn’t commence until after 1 April 2020, different insurance commencement criteria will apply - see below for more info.

If you have questions about these changes and what you should know, take a look at our FAQs.

Something to bear in mind, these new laws are different to the Protecting Your Super (PYS) laws which were introduced in July 2019.

Overview
What are the Putting Members’ Interests First (PMIF) laws?

The Putting Members’ Interest First (PMIF) laws aim to ensure super fund members aren’t paying for insurance cover they may not need or want, which may erode their super balance.

The key changes are:

  • Members with standard insurance cover and an account balance less than $6,000 as at 1 November 2019 must let us know by 31 March 2020 if they want to keep their cover after 1 April
  • From 1 April 2020, new members who join the fund that are under age 25 or who have a balance less than $6,000 will need to elect to receive standard insurance cover.
Why has the Federal Government introduced these changes?

To improve the future balances of super fund members by ensuring they’re not paying for cover they may not need or want.

Who is affected by these changes?

In a snapshot, the new laws affect members with standard insurance cover and an account balance less than $6,000. From 1 April 2020, members aged under 25 or with an account balance less than $6,000 will need to elect to have standard insurance cover. If they don't, insurance cover will commence from the later of the date the balance reaches $6,000 for the first time, or on their 25th birthday, provided they have received an on-time employer contribution and are active (received a contribution within the previous 16 continuous months).

Members with standard insurance who joined CareSuper prior to 1 April 2020 and have an account balance less than $6,000 must let us know if they want to keep their insurance cover by 31 March 2020, or their cover will be cancelled on 1 April 2020.

Members in a corporate insurance arrangement (CIA) should check with their employer whether or not they’re affected. However, rule of thumb, if the employer is responsible for paying the full cost of the insurance fees, the new PMIF laws won’t apply and insurance cover will remain in place even if the balance is under $6,000 or they're under age 25 at 1 April 2020, unless the member becomes responsible for paying the fees prior to this date.

I’m a new or current member
If you’re affected by PMIF, there’s a number of things you should consider before 1 April 2020.
I’m a corporate insurance member
If you’re part of a CIA, you might be affected by these laws now or in the future.
I’m an employer
See how your employees may be affected by these laws and where you can get help to answer their questions.