Following the June 30, 2019 implementation deadline, The Association of Superannuation Funds of Australia (ASFA) surveyed its member funds in July about the impact of the Protecting Your Super (PYS) changes on the provision of insurance cover through superannuation. Respondents to the survey were responsible for over a half of the total superannuation accounts in the system affected by the changes.
Based on the responses, an estimated three million accounts in total were liable to lose insurance cover on 1 July as a result of the changes, unless the member specifically opted-in.
There was an average opt-in rate for insurance cover of just over 16 per cent of those affected.
However, the opt-in rate varied significantly between funds, from around seven per cent to 40 per cent of those affected. The demographics of fund members together with the engagement of a fund with its members appeared to influence the opt-in rates. Some public sector and corporate funds achieved particularly high opt-in rates.
Commenting on the survey results, ASFA Deputy CEO and Chief Policy Officer, Glen McCrea said, “the high opt-in rate shows the value that people place on having insurance as part of their superannuation, and that Australians take these insurance changes seriously.”
The paper, released today, also looks at the potential impact of the upcoming Putting Members’ Interests First (PMIF) changes which will take effect on 1 April, 2020. It is estimated that these further changes might affect around 1.5 million accounts initially and up to an additional 100,000 or so accounts a year on an ongoing basis.
For further information and media inquiries, 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.