Changes to insurance in super: Putting Members’ Interests First

Changes to insurance in super that were announced in the 2018/19 Federal Budget recently became law, and will take effect from 1 April 2020.

The new law, called the Treasury Laws Amendment (Putting Members’ Interests First) Act 2019, stops super funds from providing insurance cover on an ‘opt out’ basis to certain members.

This law does not currently apply to us, but we will notify you if that changes.

What are the ‘Putting Members’ Interests First’ measures?

Currently, many super funds automatically provide insurance cover to members when they join. This is known as ‘default insurance’ and members need to ‘opt out’ if they consider the insurance to be inappropriate for them.

From 1 April 2020, super funds will no longer be allowed to provide insurance on an ‘opt out’ basis to members who either:

• Are under 25 years old and open a new super account on or after 1 April 2020
• Hold a super account with a balance below $6,000, and that balance has not been $6,000 or more on or after 1 November 2019

Members who are affected by these changes may be able to take out insurance or keep their existing insurance within their super by notifying their super fund in writing.

We won’t be introducing these changes for our members

The ‘Putting Members’ Interests First’ measures won’t affect any insurance you have within your GESB Super or West State Super account at this stage.

As a WA public sector super fund, our state regulations don’t currently allow us to carry out the requirements of this new legislation. If you do have insurance through GESB Super or West State Super, we’ve provided some useful links below to help you make sure your cover suits your needs.

The legislation doesn’t apply to defined benefit funds, such as Gold State Super.

We’ll update you on any future changes to super regulations that could impact you through this website, and we’ll always notify you of any significant changes or events by email or mail.

How to make sure your insurance is right for you

If you’re a GESB Super or West State Super member, you may automatically receive basic cover for Death, Total & Permanent Disablement and Salary Continuance Insurance, if you’re eligible. The cost of this insurance is paid from your super account monthly.

With insurance through GESB Super or West State Super, you can tailor your cover to better suit your needs, subject to terms and conditions. You can also cancel your insurance at any time.

It's important to review your insurance regularly, especially when you go through changes, such as changing jobs, buying a house or having children. Use our simple checklist to help you review your insurance and make sure it’s right for you.

Find out more

Learn more about your GESB Super insurance or West State Super insurance.

Download our Insurance and your super brochure.