Let us help you understand our recent insurance updates

Between new member cards, and various insurance updates relating to your account, April and May are panning out to be very busy months for LUCRF Super – and our members.

Regardless of how many pieces of communication you may receive, please read each letter or email as they'll all have an impact on your super account and/or insurance cover.

We appreciate that insurance can be complicated! To help you better understand the information you've received, we've broken down each communication into easy-to-digest segments:

Is your account inactive with a balance of $6,000 or less?

  • If your LUCRF Super account has a balance of $6,000 or less and is inactive (hasn't had a contribution in 16 months), then your account will be transferred to AUSfund, who will run a cross-fund matching program with other super funds.
  • If you do have a low balance, it may indicate that you have multiple super accounts and your retirement savings are at risk of being eroded by multiple sets of fees.
  • If your super is transferred to AUSfund, your LUCRF Super insurance cover will cease.

What to do: If you have a low super balance and don't want it transferred to AUSfund, contact us on 1300 130 780 by 30 April 2019. For more information, click here.

FAQs:

What do I do if I have a balance of $6,000 or less, and inactive?

If you've received a letter from us indicating that your LUCRF Super balance is below $6,000 and/or inactive, with no account activity over the past 16 months, you have two options:

  • instruct us to keep your account and relevant insurance cover active by arranging for quarterly premiums to be paid to cover the deductions, or
  • transfer your balance to another super account that you may have, so you aren't paying multiple account fees.

Who is AUSfund and why has my super balance gone to them?

AUSfund is an eligible rollover fund owned by industry funds which acts as a holding place for low- balance inactive accounts transferred from other funds, including ours. AUSfund has low fees  (helping to preserve your savings) and their investment returns are projected to be above CPI. If your account is transferred, you'll continue to receive customer service and support, and receive a  member statement annually.

What happens to my super balance if I don't contact LUCRF Super before 30 April 2019?

If we don't hear from you, your account will be transferred to AUSfund who will attempt to combine your LUCRF Super account with any other active super account you may have. If no other super account is found, your account will be held with AUSfund until they can reunite you with your super, you claim it yourself or the balance of your account is transferred to the ATO. You can contact AUSfund on direct on 1300 361 798 for more information.

Will I still have Death & Total and Permanent Disability (TPD) and Death Only cover if my balance is transferred to AUSfund?

No. If your balance is transferred to AUSfund, any insurance cover or other benefits you had with us will cease from the day your super balance is transferred.

How do I get my balance from AUSfund to my current super fund?

If you have an active super account, AUSfund will automatically transfer your super balance to your active account. You can contact AUSfund directly on 1300 361 798 for more information.

I don't have another super fund, what do I do if I've missed the 30 April 2019 deadline?

You can:

  • instruct us to keep your account and relevant insurance cover active by arranging for quarterly premiums to continue to be deducted from your LUCRF Super account, or

  • keep your super balance with AUSfund where your super will remain invested with projected investment returns above CPI. If you become a member of another super fund later on, you can request your balance to be transferred to that fund.

 

If you haven't made a contribution to LUCRF Super in the past 16 months or notified us of your intention to maintain your insurance cover – your insurance cover could be cancelled

  • From 1 July 2019, if you haven't made a contribution to your superannuation account over the past 16 months or notified us of your intention to maintain your insurance cover, then your account will be considered inactive.
  • If your account is declared inactive, any insurance cover you have linked to that account will be cancelled.

What to do: If you want to maintain your insurance cover, please follow the instructions by the date specified in the letter or email you received from us. You can also contact us on 1300 130 780 or mypartner@lucrf.com.au to discuss your options going forward.

FAQs:

Why has the insurance cover on my super or pension account been cancelled?

From 1 July 2019, legislation will prevent a superannuation fund from offering or maintaining insurance for a member's account if the account has been inactive for 16 months or more.

Why has my account been considered inactive?

From 1 July 2019, legislation will prevent a superannuation fund from offering or maintaining insurance for a member's account if the account has been inactive for 16 months or more.

Our records show that you haven't made any contribution to your super account in the past 6 months, which may indicate that:

  • you're on maternity leave and aren't making contributions, or
  • you're on extended travel overseas, or
  • you're not working, or
  • You're contributing to another fund.

Alternatively, if you are a Pension member and you haven't notified us of your intention to maintain your insurance.

What can I do to keep my account active, so I don't lose my insurance cover?

If you wish to keep your account active and maintain your insurance cover, you need to contact us on 1300 130 780 to discuss what you need to do to keep your account active.

My last contribution wasn’t that long ago (e.g. 6-7 months). Why am I receiving such a long notice period about my insurance being cancelled?

Due to recent government legalisation changes, superannuation funds are required to contact all members who, at 1 April 2019:

  • have insurance on their superannuation account, and
  • haven’t had a contribution put into their super fund since 1 October 2018.

The reason behind the 6-month minimum contribution period is that from 1 July 2019, funds will be required to send ‘warning’ notifications to members with insurance who haven’t had a contribution in the past:

  • 9 months
  • 12 months, or
  • 15 months.

After a period of 16 months with no contributions, members will receive a final notification to confirm that their insurance has been cancelled.

As of 1 April 2019, any member whose last contribution was made exactly 6 months ago will receive a 9-month ‘warning notice; shortly after 1 July 2019.

If you receive a warning notice and wish to keep your insurance cover, you need to contact us on 1300 130 780 - by the date specified in your ‘warning notice’ - to discuss what you need to do.

 

Our insurance cover is changing on 1 July 2019

  • From 1 July 2019, the level and cost of your Death & Total and Permanent Disablement (TPD) and Death Only insurance cover will change, depending on your age.
  • These changes are a reflection of our understanding that there's no one-size-fits-all approach to insurance cover and our members.
  • After 1 July 2019, our insurance cover will be tailored to better suit your needs as your circumstances and financial requirements change during the course of your life.
  • If you want to assess your short and long-term insurance needs, you can access our insurance calculator to determine your specific requirements.

What to do: If you're 33 or under with Fixed Premium cover and want to keep your current cover, you need to let us know by 31 May 2019, or contact us on 1300 130 780 or your cover will automatically convert to the new level of cover.

More information: Head to our insurance page for more information on our insurance cover and what it means to you. 

FAQs:

Why is my insurance cover changing?

In the past, all our members paid the same premium as each other, regardless of their age and circumstances. Now, our premiums and cover reflect individual ages and circumstances in recognition that everyone has different requirements.

You can decide what level of insurance cover you want. You can review, vary or cancel your insurance cover at any time, if your circumstances change. If you want to tailor your insurance cover to your specific needs, then head to the insurance cover calculator on our website where you can estimate what you may need later in life.

I'm under 33 and want to keep my current cover, what do I do?

If you're under 33 and want to keep your Fixed Premium cover, you need to contact us by 31 May 2019. If we don't hear from you, you will automatically move to our new lower level of cover.

How will the age-based approach benefit me now that I'm paying higher premiums, yet my cover has been reduced?

The level and cost of your insurance cover will change, depending on your age. You'll have lower levels of cover when you're likely to need it the least (for example, when you're young or you're nearing retirement), and higher levels of cover when you're likely to need it the most (such as when you have a mortgage or have children living at home).