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

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 and/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.

Members 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 should check with their employer whether or not they’re affected. However, rule of thumb, if the employer pays 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.

Info for members
How do I find out my super account balance?

You can check your account balance in MemberOnline, your latest annual statement or by calling us on 1300 360 149.

What insurance cover do I have with CareSuper?

To check what type and the amount of insurance cover you currently have with CareSuper, log in to MemberOnline or call us on 1300 360 149.

How much does my insurance cover cost?

The cost of your cover depends on your age and gender.

You can check the cost of your cover through MemberOnline, by checking your relevant Insurance Guide or by calling us on 1300 360 149.

How do I let CareSuper know I want to keep my cover?

Existing CareSuper members with an account balance under $6,000 as at 1 November 2019 must let us know if they want to keep their insurance cover by 31 March 2020, or their insurance cover will be cancelled.  

If you’re affected by the PMIF laws, you would have received a letter or email from us. You can elect to keep your cover through the online portal or by completing the relevant form. Check your email or letter for more details on how to make an election or call us on 1300 360 149 for help.

What will happen if I take no action to keep my cover by 31 March 2020?

Your insurance will be cancelled on 1 April 2020 and fees will no longer be deducted from your account. We’ll write to you to let you know your cover has been cancelled.

If I reach a balance of at least $6,000 by 31 March 2020, what will happen to my insurance cover if my balance drops below that amount in future?

You only need to reach a balance of $6,000 once after 1 November 2019. Once you’ve met this requirement you are exempt from the PMIF laws and you’ll retain your insurance cover regardless of whether your balance drops below this amount in future.

If my balance reaches $6,000 at any time between 1 November 2019 and 31 March 2020 but is below this amount on 1 April 2020, what will happen to my insurance cover?

You only need to reach a balance of $6,000 once after 1 November 2019. Once you’ve met this requirement you are exempt from the PMIF laws and you’ll retain your insurance cover regardless of whether your balance drops below this amount in future.

Do these laws also affect my income protection cover?

The PMIF laws affect members with standard cover.

If you have income protection cover that you applied for in addition to your standard cover, you’re exempt from the laws and will not lose any of your cover on 1 April 2020.

If your income protection cover was provided automatically due to your employer's insurance arrangements with CareSuper, you will need to let us know if you want to keep your cover.

My employer pays the full cost of my insurance cover. Will I be affected by the PMIF laws if I leave the employer in the future or my employer ceases paying my insurance fees?

In the event you are no longer employed by your current employer or your employer stops paying your fees, you may be required to let us know if you want to keep your cover. We’ll write to you at that time so you can make a choice.

If you do decide to keep your cover, you will be responsible for covering the cost of your cover and insurance fees will be deducted from your super account.

How do I cancel my insurance cover?

If you no longer want your cover from 1 April 2020 and your account balance has not reached $6,000 since 1 November 2019, you don’t need to do anything. Your insurance will be cancelled on 1 April 2020 and fees will no longer be deducted from your account.

You can also cancel your cover at any time through MemberOnline, by completing relevant form or by calling us on 1300 360 149.

I have super in a few funds. Do the rules around the $6,000 balance apply to each individual account?

Yes. Each of your super accounts, provided they have standard insurance cover, will be assessed individually. If any account has a balance less than $6,000, your cover on that account will be switched off from 1 April 2020 unless you elect to keep it.  

This is a good opportunity to review your cover for each account and consider consolidating them if it’s the right move for you. This means you’ll have one super account balance and pay one set of fees.

If I make a change to my insurance cover between now and 31 March 2020, am I still affected by the PMIF laws?

You can tailor your insurance cover at any time to suit your needs.

The PMIF laws will only affect members with standard cover.

If you choose to increase, decrease or alter your cover in some other way (e.g. change your occupational category, add income protection cover) you will not be affected by the PMIF laws and will not lose your cover on 1 April 2020.

CareSuper has recently let me know my insurance cover may be cancelled under the PMIF laws as well as the Protecting Your Super (PYS) laws. If I elect to keep my cover under one set of laws, does this count as an election for both?

Yes. If you choose to keep your cover under either the PMIF or PYS laws, it is counted as an election for both. Your cover will continue irrespective whether your account has a balance of less than $6,000 or becomes inactive, and insurance fees will continue to be deducted from your account.

You can cancel or apply to tailor your cover at any time through MemberOnline or by completing the relevant form.

Learn more about PYS here.

I’m under 25 and currently have insurance with CareSuper. Will I lose my insurance at 1 April 2020?

No. Existing members who joined prior to 1 April 2020 and are under 25 will keep their insurance cover as long as their balance is over $6,000.

New members under age 25 who join CareSuper after 1 April 2020 will not receive standard insurance cover, unless they elect to have it.

Where can I get some help to make the right decision for me?

Not sure what cover’s right for you? You may like to speak to a financial planner. As a CareSuper member you have access to financial advice over the phone as part of your membership^. Request a call back at caresuper.com.au/advice or call us on 1300 360 149.

^ Financial advice obtained over the phone, or through MemberOnline, is provided by Mercer Financial Advice (Australia) Pty Ltd (MFAAPL) ABN 76 153 168 293, Australian Financial Services Licence #411766

What other information should I consider when deciding whether to keep my cover?

You should consider whether having insurance cover within your super is right for your circumstances.

If you have more than one super account, this is a good opportunity to review your cover for each account and consider consolidating your accounts if it’s right for you. One balance means one set of fees.

Your cover remains active up until the PMIF laws come into effect. This means you are covered for any insurable events that happen prior to 1 April 2020. The PMIF laws apply from 1 April 2020.

How will I get insurance cover after 1 April 2020?

From 1 April, standard insurance cover will switch on without you having to provide health evidence once your balance reaches $6,000 and you’re aged 25 or over, as set out in your relevant Insurance Guide available from 1 April 2020.

If you’re under age 25 when you join the fund or if you join with a balance less than $6,000, you’ll need to elect to have cover.

I have an insurance claim in progress. Will these laws affect my claim?

No, your current claim will not be affected.


You are still covered for any insurable events that happen prior to 1 April 2020. The PMIF laws apply from 1 April 2020.

If you don’t take action to keep your cover before 31 March 2020, you will lose your current cover on 1 April 2020 and will no longer be covered for events that occur after this date.

What happens if my cover is cancelled on 1 April 2020?

You will have no insurance cover from 1 April 2020 and will no longer be covered for insurable events that occur from this date. However, if your balance reaches $6,000 after 1 April 2020 your insurance will recommence (conditions apply).

You are still covered for any insurable events that happen prior to 1 April 2020. The PMIF laws apply from 1 April 2020.

If your cover is cancelled on 1 April 2020, you can apply to have your cover reinstated or apply for new cover. Your application will need to be assessed and approved by our insurer and medical evidence may be required.

Info for CIA members
My employer pays for some or all of my insurance cover. Am I affected by PMIF?

If your employer pays for only part of the cost of the cover provided automatically through the corporate arrangement, you will be affected by the PMIF laws if your balance is less than $6,000 as at 1 November 2019. You must let us know by 31 March 2020 if you want to keep your cover.

If your employer pays the full cost of your fees, you will not be affected. Your cover will continue from 1 April 2020 regardless of your super account balance at that time. If you leave this arrangement after 1 April 2020 and your account balance is under $6,000 and/or you’re under 25, you may need to let us know if you want to keep your cover. We’ll write to you at that time, so you can make a choice.

My employer pays for some insurance cover and I pay for additional or other cover. Will I lose any of my cover due to the PMIF laws?’

The PMIF changes are only relevant for members with standard insurance cover. Because you’ve chosen to have additional or other cover, you will not be affected by PMIF and all your cover will continue from 1 April 2020.

I am currently part of a corporate insurance arrangement and my employer pays the full cost of my insurance cover. Will I be affected by the PMIF laws if I leave the employer in the future?

In the event you are no longer employed by your current employer in the future, you will move to the CareSuper Employee Plan and you may be required to elect to keep your cover. We’ll write to you at that time so you can make a choice.

If you do decide to retain your cover, you will be responsible for covering the cost of your cover and insurance fees will be deducted from your super account.

Info for employers
I’m an employer and some of my employees have their super paid to CareSuper. Am I affected by the PMIF laws?

You are not directly affected by the PMIF laws, however some of your employees may be affected. We will write to any affected employees to let them know their cover may be cancelled unless they take action to keep it before 1 April 2020.

If you have questions, speak to your client partnership manager who is there to support you and your employees.

I’m an employer and have a corporate insurance arrangement in place with CareSuper. Are my employees affected by PMIF?

If you pay for some of the cost of your employees’ insurance fees provided through the corporate arrangement, your employees may be affected by the PMIF laws if they have a balance less than $6,000 at 1 November 2019. They must let us know by 31 March 2020 if they want to keep their cover with us.

If you pay the full cost of your employees’ fees, they are not affected by the PMIF laws while they remain under that arrangement. Their cover will continue from 1 April 2020 regardless of their super account balance. If you have questions, speak to your client partnership manager who is there to support you and your employees.

If you have questions, speak to your client partnership manager who is there to support you and your employees.