Cbus Super will reappoint TAL as its insurer after taking into account the “stapling” superannuation proposal announced in the Federal Government’s budget measures.
Cbus group executive member and employer experience, Marianne Walker, said insurance was one of the most important benefits that a super fund could provide, particularly for Cbus members who faced a higher risk of workplace injury as two-thirds worked in the building and construction industry.
Walker said the importance of maintaining default insurance of Cbus members was front of mind when negotiating the new arrangements.
The insurance benefits members received through the default system was even more important given the Government’s “stapling” super measure, Walker noted.
“Under the proposals, members may get ‘stapled’ to a fund at their first job. For example, from bar work or a retail job when they are at school or studying after they finish school,” she said.
“Later, when they move to their chosen career in the building and construction industry, the insurance they received from the original fund may not cover them, as they are in an industry that can be classified as dangerous.
“Continuing to work with TAL to maintain the cover for our members, will help keep them reassured as they progress through their career in the building and construction industries.”
The arrangement would be effective for five years from 1 July, 2021, and TAL had committed to:
Deliver or support a range of activities critical to the future success for Cbus that includes providing even better service and outcomes for members;
A lower cost pricing model that will deliver better financial outcomes for members and support sustainability; and
An enhanced governance and oversight model.