What is the Protecting Your Super Package and Putting Members Interests First

Hi there, it’s Grant Millar from www.inspiredfinancialplanners.com.au and today I just want to talk briefly about some changes that have happened in recent months around the insurance through super and what the long-term implications Are if you don’t take action on these changes very soon The two changes just like you would expect with any government Change or you know legislation that’s introduced – big long fancy names first one is called ‘Putting Members Interests First’ (PMIF) That’s the one that was just recently introduced and passed The other one was called ‘Protecting Your Super Package’ (PYSP) and actually back dates to first July So it’s really important that you stick around and make sure you weren’t affected by this Now I recently gave advice to a client who had changed jobs a number of times and had multiple super accounts. Unfortunately didn’t carry the same super account throughout each job And already had been affected by one of these changes that protecting a super package had lost insurance in his super account Fortunately still had some of the others but they were pretty poor But fortunately it came to me to give advice so we could have a look at this and really just sorted out. Now, this made me wonder… how many people have been affected by this? How many people change jobs? don’t make Contributions to their fund, do all those sorts of things, and how many people would actually be affected by this and it really worried me so I thought I’ll put this quick video together to give you a couple of tips around what it is and how to take action on it and make sure that You’re not negatively affected by these changes if you haven’t already been. Now the first one that you need to know about is the ‘Protecting Your Super Package’ (PYSP). So, this one basically was introduced to say, look, if you haven’t made any contributions into your super account in the last 16 months – in a continual period of 16 months – contributions being from an employer, voluntary contributions from you or a rollover from another fund… nothing really has happened in that space in 16 months. The insurance is mandated to the super fund to be cancelled The only way to get around this if you haven’t made those contributions is you can contact the super fund and you can opt in To make sure that you keep that insurance now from the 1st of April 2020 There’s a couple of other things that are coming into play Which is this ‘Putting Members’ Interests First’ (PYSP) package that kind of came in to make these other changes essentially They affect new members of a super fund under the age of 25. They won’t get offered insurance Another thing too is if you’re super balanced hasn’t reached six thousand dollars by the 1st of April That’s the other trigger point to the super fund will cancel your insurance Now here’s what I need you to do. There’s three things The first thing is make sure you know where all of your super is You can jump on my.gov.au and connect that on through to the ATO if you haven’t already Jump through into the ATO site and you can actually use that site to find which of your super funds that have your tax file number recorded will be reporting to the ATO and they would tell the ATO the Name of the super fund, how much you recently had The contact details of the fund your member numbers are really important information now what I want you to do with that information is I want you to contact that fund and Check what kind of insurance you have? You can ask them for a member statements or something that will kind of give you that information the third thing that I want you to do is just get financial advice to make sure that that insurance is actually Set up correctly and it’s the right suitable policy for you and you have enough, and to really educate you to better understand this. Because most people have no idea. You go through life. You don’t get to what any of this sort of stuff at school. Super is nothing you get taught about. Nothing about insurance. But you really want to make sure that your and your family and your loved ones are all protected financially It’s the whole entire purpose of having insurance is that you want to make sure you’re able to claim on it and the whole purpose of having this stuff is if Short, medium, long-term, you’re unable to work due to illness or injury, or if you pass away that there’s no massive detrimental financial impact, and that’s essentially what you need to make sure it is set up. And I’m here to help with that. Look, I want to keep it brief. So I’m just going to leave it there, but feel free to reach out Leave me a comment below if if you’re not sure if you have multiple accounts Or if you just want to ask a question It may be beneficial to a lot of other people who are thinking the same thing. If you’re not too comfortable with that, which I know finances one of those things that a lot of people aren’t comfortable with, send me a message and I’ll be happy to help on that front as well. Finally the last thing I need you to do is jump into the ‘Inspired Money Tips’ Facebook group (www.facebook.com/groups/inspiredmoneytips) It’s a safe place for people to discuss how to make smarter, wiser, financial decisions. That’s it for now, though It’s Grant Millar from www.inspiredfinancialplanners.com.au and until next time with some more inspired money tips I look forward to seeing you then. Bye for now

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