Recognition of members’ insurance decisions welcomed

The Government’s decision to recognise superannuation fund members’ insurance decisions when their account is transferred through a successor fund transfer or a trustee initiated intra-fund transfer has been welcomed by the Association of Superannuation Funds of Australia (ASFA). 

ASFA said the proposed legislative change would help to minimise the possibility of members who had opted-in for insurance cover from unintentionally losing their insurance entitlement and reduce confusion for members during a successor fund or intra-fund transfer. 

ASFA chief executive, Martin Fahy, said: “This is a win for consumers who will retain their valuable insurance cover through superannuation where they have elected to do so, keeping them and their families protected in the instance of a tragic event occurring”. 

The association noted the recognition would also provide greater certainty for trustees who were contemplating or engaged in a fund merger and were concerned that member insurance benefits might be adversely affected by the transfer.