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Confusing messaging about occupational exclusions
The Your Future, Your Super bill is giving workers mixed messages about occupational exclusions for insurance within super funds, according to the Shadow Minister for Financial Services and Superannuation, Stephen Jones.
Prior to the Bill passing last week, there were concerns that being stapled to a super fund while in one occupation, could leave employees at risk if they moved to a riskier occupation at a later date.
This included occupations such as healthcare, emergency services and construction workers who required life insurance within their super.
Jones said Jane Hume, Minister for Superannuation, Financial Services and the Digital Economy, was giving workers inaccurate messaging about their potential life insurance premiums.
Jones said: “Funds set up for workers in low-risk jobs (for example, café workers) legitimately exclude high risk jobs from insurance cover to keep premiums down.
“Part of the reason high-risk jobs have their own super funds is so they can offer high-risk life insurance. Is the Minister suggesting all funds now need to include cover for high-risk jobs?”
He said several major super funds such as AMP, MLC, CFS and REST excluded high risk occupations from their super funds.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
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