18 May 2020
ASFA welcomes recognition of members’ insurance decisions in Successor Fund Transfers (SFTs)
The Association of Superannuation Funds of Australia (ASFA) welcomes the Government’s decision to recognise members’ decisions about their insurance when their account is transferred either through a successor fund transfer (SFT) or a trustee initiated intra-fund transfer.
ASFA CEO, Dr Martin Fahy, said: “ASFA has advocated for this measure since the Putting Members’ Interests First package was introduced and most recently in our pre-Budget submission and we are pleased that the Government has indicated that it will amend the legislation”.
“This is a win for consumers who will retain their valuable insurance cover through superannuation where they have elected to do so, keeping them and their families protected in the instance of a tragic event occurring.”
The proposed legislative change will help to minimise the possibility of members who have opted-in for insurance cover from unintentionally losing their insurance entitlement and reduce confusion for members during a successor fund or intra-fund transfer.
It will also provide greater certainty for trustees who are contemplating or engaged in a fund merger and who are concerned that member insurance benefits might be adversely affected by the transfer.
ASFA would also like to recognise APRA’s role in providing facilitative compliance for trustees until the legislation can be amended. APRA has updated the FAQs on their website, and this means that trustees can proceed to implement their plans and prevents unnecessary delays.
For further information, please contact:
Jacqui Maddock, 0451 949 300.
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.