Protecting Your Super: what you need to know

On 1 July 2019, the Federal Government’s Protecting Your Super (PYS) legislation comes into effect. The legislation is designed to protect Australians’ super savings from unnecessary erosion by fees and insurance costs.

What it means to your super

The PYS legislation includes changes to fees, cancelling insurance for inactive members, and transferring inactive low-balance accounts to the Australian Tax Office (ATO).

How will the changes impact you as a LUCRF Super member?
 

Changes to fees

  • We’ll remove exit fees, including fees for part withdrawals, from all super accounts from 1 July 2019.
  • There’ll be a 3% cap on administration and investment fees on member accounts with balances of $6,000 or less.

Changes to insurance

  • If your account is considered inactive, and you’ve not advised us that you wish to keep your insurance, your cover with LUCRF Super will be cancelled on 1 July 2019, and
    • you won't be able to make a claim for insurance benefits for events or conditions that arise after your cover has ceased, and
    • future applications for insurance cover through your superannuation may be subject to a health assessment and acceptance by the insurer, and you may not be able to get cover.

Inactive low-balance accounts

  • If your account has a balance less than $6,000 and has been inactive for 16 months, it will be transferred to the ATO.
  • An account is considered inactive if no contributions have been made for 16 months in a row.
  • If you haven’t made any active changes to your account such as changing your investment option, insurance cover or binding beneficiary nomination, your account will be considered inactive and it’ll be transferred to the ATO. 
  • If your account is transferred to the ATO, the ATO will combine the balance of your transferred account into an active account you may have with another super fund. If you don’t have an active account with another fund, your account will be managed by the ATO.

If you have any questions about the Federal Government's PYS legislation and how it impacts your account, or if you need help in locating lost super that you would like to have combined into your LUCRF Super account, please contact us on 1300 130 780 and we’ll help answer any queries you may have.