How unpaid leave affects your insurance

At some point in your career, you may need to take unpaid leave. The impact your leave will have on your super and insurance cover will depend on the length of time you take and the reason why you take it.

Unpaid leave for GESB Super and West State Super members

When you take unpaid leave, your employer will not be paying you a salary or making any Superannuation Guarantee (SG) contributions on your behalf. With no SG contributions being paid into your account, your insurance cover may also be affected.

Let’s look at the effect that taking unpaid leave may have on your different insurance covers.

Death cover and Total & Permanent Disablement (TPD) cover continues

When taking unpaid leave, your Death cover and TPD cover will continue and your premiums will still be deducted from your account. If there’s not enough in your account to keep paying your premiums, and your premiums remain unpaid, your cover will lapse.

For more details on the conditions that apply to periods of unpaid leave of more than 24 months, read the Insurance and your super brochure.

Salary Continuance Insurance might not continue

If you take unpaid leave, you need to let us know. If you go on unpaid leave you can choose to continue your SCI cover for up to 24 months (from the time your leave started) if you keep paying your premiums for that period.

Premiums will be deducted from your account to continue your SCI cover while you are on unpaid leave.

Your SCI cover will lapse after 180 days unless you let us know

Your SCI cover will automatically lapse if 180 days (previously 120 days prior to 1 October 2022) has passed since your last SG contribution was received, even if you’re taking approved unpaid leave for up to 24 months.

If you want your SCI cover to continue, you need to let us know to avoid your SCI cover automatically lapsing. You can do this either by sending a letter to us, or by responding to the form we will automatically send out when your SG payments stop. You can also call us on 13 43 72 to confirm you wish to continue your SCI cover during unpaid leave.

You could extend or reinstate your SCI cover

You can apply to extend the cover period beyond 24 months but you need our Insurer’s approval.

You may be able to reinstate SCI cover that lapsed during a period of leave without pay. If your SCI cover has lapsed due to us not receiving employer contributions during a period of leave without pay, you will be able to apply to reinstate your SCI cover without assessment by the Insurer. You would need to:

• Apply before your approved return to work date from your approved leave without pay
• Pay your premiums during the period of approved leave
• Provide written evidence of the approved leave without pay when you apply

Your agreed return to work date would need to be within 24 months of going on leave without pay (or, where an extension was approved beyond the 24 months by the Insurer, within the extended period approved).

Check your details are up-to-date

It’s important we have your current contact details so we can contact you if we need to tell you important information about your account or your insurance cover.

To view or change your current details, login to Member Online or call us on 13 43 72.