To help us celebrate, the government has introduced some fun new changes to the world of super! Well, as fun as they can be.
The policy was designed to shield low balance super accounts from creeping costs and pricey premiums.
The aptly named Protecting Your Super (PYS) changes may affect a number of our members, so we wanted to summarise what’s been revised and what we have put in place to help.
So buckle up and get ready to read about some legislation!
The PYS changes were introduced because a lot of low balance super accounts were at risk of being chewed up by fees and insurance premiums. That super account many of us didn’t know we had from working hospitality jobs years ago were in danger of being whittled away.
The new rule changes are designed to protect those low balance accounts from erosion by fees and insurance premiums and to help people consolidate their multiple super accounts.
Under these changes, there are two categories of members who might be affected:
Accounts affected under PYS must meet the following criteria:
A members whole account balance is less than $6,000 AND one or more of the following;
An Inactive low balance account is essentially a super account with a balance below $6,000 and none above stated actions have occurred in the past 16 months. The result of this is that the balance will be transferred to the ATO.
An inactive account for insurance purposes is where contributions have not been received in your account for the past 16 months and that you have not let us know that you’d like to continue to hold insurance cover.
To find out your super balance, you can log in to your Member Portal here.
If your account is considered inactive, you just need to do one of the following actions to stop your account from being rolled over to the ATO:
To prevent your insurance cover being cancelled, you are required to make a financial change on your superannuation account. This could be one of the following:
You can make an election to keep your insurance cover by emailing us at email@example.com and specifying the following information:
Once you’ve done this, we won’t need you to do it again, even if your account remains inactive.
From 1 July 2019, Future Super will not charge the annual dollar-based fee on accounts with balances of less than $6,000. This is due to the new changes whereby administration and investment fees charged cannot exceed 3% of the balances of accounts with less than $6,000*. This makes our Balanced Index option one of the lowest fee super products available for low balance members!
If you want to make changes to your account so that this will not impact you, log into your Member Portal here or get in touch with the Member Advocacy team on 1300 658 422 or firstname.lastname@example.org.
*This does not include buy/sell spreads, insurance premiums and other activity fees such as investment switches (if applicable) and family law fees.