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.

PMIF FAQs
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 an account balance less than $6,000 as at 1 November 2019 must opt in by 31 March 2020 to keep their insurance cover after 1 April 2020
  • 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 opt in to receive 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 balances under $6,000 and members aged under 25.

Members who joined CareSuper prior to 1 November 2019 and have an account balance less than $6,000, must opt in to keep their insurance cover by 31 March 2020, or their insurance cover will be cancelled on 1 April 2020.  

New members joining CareSuper from 1 April 2020 under age 25 or with a balance less than $6,000 must opt in to receive insurance cover.  If not, 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 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 under age 25 at 1 April 2020.

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.

What is my super account balance?

You can check your account balance in MemberOnline, your latest annual statement 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 opt in 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 opt in 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 opt in 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.

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.

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.

Will I keep my insurance cover if my balance reaches $6,000 by 1 April 2020? Will I have to fill in medical forms?

If you’re affected by the PMIF laws and your balance reaches $6,000 prior to 1 April 2020, your current insurance cover will not be cancelled.

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 opt in to have cover.

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 insurance, 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 opt in 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.

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 opt in to receive it.

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. You will no longer be covered for death and total and permanent disability. However, if your balance reaches $6,000 after 1 April 2020 your insurance will recommence (conditions apply).

You can also 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.

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