❓ Hon ED DERMER questions the Treasurer regarding fees and insurance premiums charged by the Government Employees Superannuation Board (GESB) on small superannuation accounts (under $1000). The Treasurer, Hon HELEN MORTON, provides a detailed explanation of GESB's practices, citing relevant legislation and member protections.
AnsweredQoN 715Legislative Council
QuestionView source ↗
GOVERNMENT EMPLOYEES SUPERANNUATION BOARD — ADMINISTRATIVE FEES AND CHARGES
(1) Will the Treasurer confirm that the superannuation accounts held by the Government Employees Superannuation Board for amounts of less than $1 000 are exempt from administrative fees and charges? (2) Will the Treasurer confirm that GESB charges small superannuation accounts of less than $1 000 insurance premiums from which the fund receives a financial benefit? (3) If yes to (2), what is the justification for this backdoor method of exhausting small accounts when such insurance premiums are levied under a deeming provision with no direct authorisation or, in some cases, knowledge of the policyholder? Hon HELEN MORTON
(1) Will the Treasurer confirm that the superannuation accounts held by the Government Employees Superannuation Board for amounts of less than $1 000 are exempt from administrative fees and charges? (2) Will the Treasurer confirm that GESB charges small superannuation accounts of less than $1 000 insurance premiums from which the fund receives a financial benefit? (3) If yes to (2), what is the justification for this backdoor method of exhausting small accounts when such insurance premiums are levied under a deeming provision with no direct authorisation or, in some cases, knowledge of the policyholder? Hon HELEN MORTON
AnswerView source ↗
I thank the honourable member for some notice of this question. (1) Member accounts with balances of less than $1 000 receive member protection. Member protection, under superannuation law, prescribes that the annual administration charge for accounts with a balance of less than $1 000 cannot exceed investment earnings in that period. However, commonwealth superannuation legislation allows superannuation funds to charge a $10 administration fee to protected accounts. Industry funds charge either a member protection fee based on a percentage of the net fund assets, or a $10 administration fee, or both. GESB introduced a $10 administration fee on 1 June 2009, and advised members of this change in March 2009. (2) GESB only deducts insurance premiums — (a) for new public sector employees. These members receive automatic insurance cover, but can increase, decrease, vary or opt out of all insurance cover at any time. These members have small account balances at the beginning as they accumulate a larger superannuation balance over time. (b) when the member continues to have insurance and has not elected to opt out. Past public sector employees whose insurance policy lapsed do not have insurance cover, and therefore no premiums are deducted. Prior to 2004, insurance was mandatory, with no opt-out provisions. In 2004, GESB introduced opt-out insurance provisions for its members. The improvements to insurance cover in July 2008 further enhanced the insurance offering for all members and provided greater flexibility for members to tailor insurance to suit their needs and also extended insurance cover for members over 60 when insurance cover previously ceased. The premiums charged to members cover the premium cost of the group life insurance policy. An administration fee is charged by GESB to cover GESB’s costs in administering insurance, including systems maintenance, account establishment, claims processing and member inquiries. In recognition that a number of casual workers in the public sector have made one-off superannuation guarantee contributions—for example, Electoral Commission employees—a new employees kit is distributed to those employees that informs them of the automatic insurance cover and explains that employees should consider their insurance needs. The information kit also includes an opt-out form for the employees’ convenience. (3) GESB members have always had automatic insurance cover and it is standard industry practice to offer insurance on this basis. All members are notified of their automatic insurance cover through a welcome letter when joining the fund, have ongoing visibility of their insurance cover through member statements and member online and also receive specific insurance communications. In addition, when superannuation guarantee contributions cease on a member’s account, GESB writes to the member to advise him or her of his or her options to ensure the cover continues to meet that member’s needs.
(2) Will the Treasurer confirm that GESB charges small superannuation accounts of less than $1 000 insurance premiums from which the fund receives a financial benefit? (3) If yes to (2), what is the justification for this backdoor method of exhausting small accounts when such insurance premiums are levied under a deeming provision with no direct authorisation or, in some cases, knowledge of the policyholder? Hon HELEN MORTON replied: I thank the honourable member for some notice of this question. (1) Member accounts with balances of less than $1 000 receive member protection. Member protection, under superannuation law, prescribes that the annual administration charge for accounts with a balance of less than $1 000 cannot exceed investment earnings in that period. However, commonwealth superannuation legislation allows superannuation funds to charge a $10 administration fee to protected accounts. Industry funds charge either a member protection fee based on a percentage of the net fund assets, or a $10 administration fee, or both. GESB introduced a $10 administration fee on 1 June 2009, and advised members of this change in March 2009. (2) GESB only deducts insurance premiums — (a) for new public sector employees. These members receive automatic insurance cover, but can increase, decrease, vary or opt out of all insurance cover at any time. These members have small account balances at the beginning as they accumulate a larger superannuation balance over time. (b) when the member continues to have insurance and has not elected to opt out. Past public sector employees whose insurance policy lapsed do not have insurance cover, and therefore no premiums are deducted. Prior to 2004, insurance was mandatory, with no opt-out provisions. In 2004, GESB introduced opt-out insurance provisions for its members. The improvements to insurance cover in July 2008 further enhanced the insurance offering for all members and provided greater flexibility for members to tailor insurance to suit their needs and also extended insurance cover for members over 60 when insurance cover previously ceased. The premiums charged to members cover the premium cost of the group life insurance policy. An administration fee is charged by GESB to cover GESB’s costs in administering insurance, including systems maintenance, account establishment, claims processing and member inquiries. In recognition that a number of casual workers in the public sector have made one-off superannuation guarantee contributions—for example, Electoral Commission employees—a new employees kit is distributed to those employees that informs them of the automatic insurance cover and explains that employees should consider their insurance needs. The information kit also includes an opt-out form for the employees’ convenience. (3) GESB members have always had automatic insurance cover and it is standard industry practice to offer insurance on this basis. All members are notified of their automatic insurance cover through a welcome letter when joining the fund, have ongoing visibility of their insurance cover through member statements and member online and also receive specific insurance communications. In addition, when superannuation guarantee contributions cease on a member’s account, GESB writes to the member to advise him or her of his or her options to ensure the cover continues to meet that member’s needs.
(3) If yes to (2), what is the justification for this backdoor method of exhausting small accounts when such insurance premiums are levied under a deeming provision with no direct authorisation or, in some cases, knowledge of the policyholder? Hon HELEN MORTON replied: I thank the honourable member for some notice of this question. (1) Member accounts with balances of less than $1 000 receive member protection. Member protection, under superannuation law, prescribes that the annual administration charge for accounts with a balance of less than $1 000 cannot exceed investment earnings in that period. However, commonwealth superannuation legislation allows superannuation funds to charge a $10 administration fee to protected accounts. Industry funds charge either a member protection fee based on a percentage of the net fund assets, or a $10 administration fee, or both. GESB introduced a $10 administration fee on 1 June 2009, and advised members of this change in March 2009. (2) GESB only deducts insurance premiums — (a) for new public sector employees. These members receive automatic insurance cover, but can increase, decrease, vary or opt out of all insurance cover at any time. These members have small account balances at the beginning as they accumulate a larger superannuation balance over time. (b) when the member continues to have insurance and has not elected to opt out. Past public sector employees whose insurance policy lapsed do not have insurance cover, and therefore no premiums are deducted. Prior to 2004, insurance was mandatory, with no opt-out provisions. In 2004, GESB introduced opt-out insurance provisions for its members. The improvements to insurance cover in July 2008 further enhanced the insurance offering for all members and provided greater flexibility for members to tailor insurance to suit their needs and also extended insurance cover for members over 60 when insurance cover previously ceased. The premiums charged to members cover the premium cost of the group life insurance policy. An administration fee is charged by GESB to cover GESB’s costs in administering insurance, including systems maintenance, account establishment, claims processing and member inquiries. In recognition that a number of casual workers in the public sector have made one-off superannuation guarantee contributions—for example, Electoral Commission employees—a new employees kit is distributed to those employees that informs them of the automatic insurance cover and explains that employees should consider their insurance needs. The information kit also includes an opt-out form for the employees’ convenience. (3) GESB members have always had automatic insurance cover and it is standard industry practice to offer insurance on this basis. All members are notified of their automatic insurance cover through a welcome letter when joining the fund, have ongoing visibility of their insurance cover through member statements and member online and also receive specific insurance communications. In addition, when superannuation guarantee contributions cease on a member’s account, GESB writes to the member to advise him or her of his or her options to ensure the cover continues to meet that member’s needs.
Hon HELEN MORTON replied: I thank the honourable member for some notice of this question. (1) Member accounts with balances of less than $1 000 receive member protection. Member protection, under superannuation law, prescribes that the annual administration charge for accounts with a balance of less than $1 000 cannot exceed investment earnings in that period. However, commonwealth superannuation legislation allows superannuation funds to charge a $10 administration fee to protected accounts. Industry funds charge either a member protection fee based on a percentage of the net fund assets, or a $10 administration fee, or both. GESB introduced a $10 administration fee on 1 June 2009, and advised members of this change in March 2009. (2) GESB only deducts insurance premiums — (a) for new public sector employees. These members receive automatic insurance cover, but can increase, decrease, vary or opt out of all insurance cover at any time. These members have small account balances at the beginning as they accumulate a larger superannuation balance over time. (b) when the member continues to have insurance and has not elected to opt out. Past public sector employees whose insurance policy lapsed do not have insurance cover, and therefore no premiums are deducted. Prior to 2004, insurance was mandatory, with no opt-out provisions. In 2004, GESB introduced opt-out insurance provisions for its members. The improvements to insurance cover in July 2008 further enhanced the insurance offering for all members and provided greater flexibility for members to tailor insurance to suit their needs and also extended insurance cover for members over 60 when insurance cover previously ceased. The premiums charged to members cover the premium cost of the group life insurance policy. An administration fee is charged by GESB to cover GESB’s costs in administering insurance, including systems maintenance, account establishment, claims processing and member inquiries. In recognition that a number of casual workers in the public sector have made one-off superannuation guarantee contributions—for example, Electoral Commission employees—a new employees kit is distributed to those employees that informs them of the automatic insurance cover and explains that employees should consider their insurance needs. The information kit also includes an opt-out form for the employees’ convenience. (3) GESB members have always had automatic insurance cover and it is standard industry practice to offer insurance on this basis. All members are notified of their automatic insurance cover through a welcome letter when joining the fund, have ongoing visibility of their insurance cover through member statements and member online and also receive specific insurance communications. In addition, when superannuation guarantee contributions cease on a member’s account, GESB writes to the member to advise him or her of his or her options to ensure the cover continues to meet that member’s needs.
I thank the honourable member for some notice of this question. (1) Member accounts with balances of less than $1 000 receive member protection. Member protection, under superannuation law, prescribes that the annual administration charge for accounts with a balance of less than $1 000 cannot exceed investment earnings in that period. However, commonwealth superannuation legislation allows superannuation funds to charge a $10 administration fee to protected accounts. Industry funds charge either a member protection fee based on a percentage of the net fund assets, or a $10 administration fee, or both. GESB introduced a $10 administration fee on 1 June 2009, and advised members of this change in March 2009. (2) GESB only deducts insurance premiums — (a) for new public sector employees. These members receive automatic insurance cover, but can increase, decrease, vary or opt out of all insurance cover at any time. These members have small account balances at the beginning as they accumulate a larger superannuation balance over time. (b) when the member continues to have insurance and has not elected to opt out. Past public sector employees whose insurance policy lapsed do not have insurance cover, and therefore no premiums are deducted. Prior to 2004, insurance was mandatory, with no opt-out provisions. In 2004, GESB introduced opt-out insurance provisions for its members. The improvements to insurance cover in July 2008 further enhanced the insurance offering for all members and provided greater flexibility for members to tailor insurance to suit their needs and also extended insurance cover for members over 60 when insurance cover previously ceased. The premiums charged to members cover the premium cost of the group life insurance policy. An administration fee is charged by GESB to cover GESB’s costs in administering insurance, including systems maintenance, account establishment, claims processing and member inquiries. In recognition that a number of casual workers in the public sector have made one-off superannuation guarantee contributions—for example, Electoral Commission employees—a new employees kit is distributed to those employees that informs them of the automatic insurance cover and explains that employees should consider their insurance needs. The information kit also includes an opt-out form for the employees’ convenience. (3) GESB members have always had automatic insurance cover and it is standard industry practice to offer insurance on this basis. All members are notified of their automatic insurance cover through a welcome letter when joining the fund, have ongoing visibility of their insurance cover through member statements and member online and also receive specific insurance communications. In addition, when superannuation guarantee contributions cease on a member’s account, GESB writes to the member to advise him or her of his or her options to ensure the cover continues to meet that member’s needs.
(1) Member accounts with balances of less than $1 000 receive member protection. Member protection, under superannuation law, prescribes that the annual administration charge for accounts with a balance of less than $1 000 cannot exceed investment earnings in that period. However, commonwealth superannuation legislation allows superannuation funds to charge a $10 administration fee to protected accounts. Industry funds charge either a member protection fee based on a percentage of the net fund assets, or a $10 administration fee, or both. GESB introduced a $10 administration fee on 1 June 2009, and advised members of this change in March 2009. (2) GESB only deducts insurance premiums — (a) for new public sector employees. These members receive automatic insurance cover, but can increase, decrease, vary or opt out of all insurance cover at any time. These members have small account balances at the beginning as they accumulate a larger superannuation balance over time. (b) when the member continues to have insurance and has not elected to opt out. Past public sector employees whose insurance policy lapsed do not have insurance cover, and therefore no premiums are deducted. Prior to 2004, insurance was mandatory, with no opt-out provisions. In 2004, GESB introduced opt-out insurance provisions for its members. The improvements to insurance cover in July 2008 further enhanced the insurance offering for all members and provided greater flexibility for members to tailor insurance to suit their needs and also extended insurance cover for members over 60 when insurance cover previously ceased. The premiums charged to members cover the premium cost of the group life insurance policy. An administration fee is charged by GESB to cover GESB’s costs in administering insurance, including systems maintenance, account establishment, claims processing and member inquiries. In recognition that a number of casual workers in the public sector have made one-off superannuation guarantee contributions—for example, Electoral Commission employees—a new employees kit is distributed to those employees that informs them of the automatic insurance cover and explains that employees should consider their insurance needs. The information kit also includes an opt-out form for the employees’ convenience. (3) GESB members have always had automatic insurance cover and it is standard industry practice to offer insurance on this basis. All members are notified of their automatic insurance cover through a welcome letter when joining the fund, have ongoing visibility of their insurance cover through member statements and member online and also receive specific insurance communications. In addition, when superannuation guarantee contributions cease on a member’s account, GESB writes to the member to advise him or her of his or her options to ensure the cover continues to meet that member’s needs.
(2) GESB only deducts insurance premiums — (a) for new public sector employees. These members receive automatic insurance cover, but can increase, decrease, vary or opt out of all insurance cover at any time. These members have small account balances at the beginning as they accumulate a larger superannuation balance over time. (b) when the member continues to have insurance and has not elected to opt out. Past public sector employees whose insurance policy lapsed do not have insurance cover, and therefore no premiums are deducted. Prior to 2004, insurance was mandatory, with no opt-out provisions. In 2004, GESB introduced opt-out insurance provisions for its members. The improvements to insurance cover in July 2008 further enhanced the insurance offering for all members and provided greater flexibility for members to tailor insurance to suit their needs and also extended insurance cover for members over 60 when insurance cover previously ceased. The premiums charged to members cover the premium cost of the group life insurance policy. An administration fee is charged by GESB to cover GESB’s costs in administering insurance, including systems maintenance, account establishment, claims processing and member inquiries. In recognition that a number of casual workers in the public sector have made one-off superannuation guarantee contributions—for example, Electoral Commission employees—a new employees kit is distributed to those employees that informs them of the automatic insurance cover and explains that employees should consider their insurance needs. The information kit also includes an opt-out form for the employees’ convenience. (3) GESB members have always had automatic insurance cover and it is standard industry practice to offer insurance on this basis. All members are notified of their automatic insurance cover through a welcome letter when joining the fund, have ongoing visibility of their insurance cover through member statements and member online and also receive specific insurance communications. In addition, when superannuation guarantee contributions cease on a member’s account, GESB writes to the member to advise him or her of his or her options to ensure the cover continues to meet that member’s needs.
(b) when the member continues to have insurance and has not elected to opt out. Past public sector employees whose insurance policy lapsed do not have insurance cover, and therefore no premiums are deducted. Prior to 2004, insurance was mandatory, with no opt-out provisions. In 2004, GESB introduced opt-out insurance provisions for its members. The improvements to insurance cover in July 2008 further enhanced the insurance offering for all members and provided greater flexibility for members to tailor insurance to suit their needs and also extended insurance cover for members over 60 when insurance cover previously ceased. The premiums charged to members cover the premium cost of the group life insurance policy. An administration fee is charged by GESB to cover GESB’s costs in administering insurance, including systems maintenance, account establishment, claims processing and member inquiries. In recognition that a number of casual workers in the public sector have made one-off superannuation guarantee contributions—for example, Electoral Commission employees—a new employees kit is distributed to those employees that informs them of the automatic insurance cover and explains that employees should consider their insurance needs. The information kit also includes an opt-out form for the employees’ convenience.
The premiums charged to members cover the premium cost of the group life insurance policy. An administration fee is charged by GESB to cover GESB’s costs in administering insurance, including systems maintenance, account establishment, claims processing and member inquiries. In recognition that a number of casual workers in the public sector have made one-off superannuation guarantee contributions—for example, Electoral Commission employees—a new employees kit is distributed to those employees that informs them of the automatic insurance cover and explains that employees should consider their insurance needs. The information kit also includes an opt-out form for the employees’ convenience.
In recognition that a number of casual workers in the public sector have made one-off superannuation guarantee contributions—for example, Electoral Commission employees—a new employees kit is distributed to those employees that informs them of the automatic insurance cover and explains that employees should consider their insurance needs. The information kit also includes an opt-out form for the employees’ convenience.
(2) Will the Treasurer confirm that GESB charges small superannuation accounts of less than $1 000 insurance premiums from which the fund receives a financial benefit? (3) If yes to (2), what is the justification for this backdoor method of exhausting small accounts when such insurance premiums are levied under a deeming provision with no direct authorisation or, in some cases, knowledge of the policyholder? Hon HELEN MORTON replied: I thank the honourable member for some notice of this question. (1) Member accounts with balances of less than $1 000 receive member protection. Member protection, under superannuation law, prescribes that the annual administration charge for accounts with a balance of less than $1 000 cannot exceed investment earnings in that period. However, commonwealth superannuation legislation allows superannuation funds to charge a $10 administration fee to protected accounts. Industry funds charge either a member protection fee based on a percentage of the net fund assets, or a $10 administration fee, or both. GESB introduced a $10 administration fee on 1 June 2009, and advised members of this change in March 2009. (2) GESB only deducts insurance premiums — (a) for new public sector employees. These members receive automatic insurance cover, but can increase, decrease, vary or opt out of all insurance cover at any time. These members have small account balances at the beginning as they accumulate a larger superannuation balance over time. (b) when the member continues to have insurance and has not elected to opt out. Past public sector employees whose insurance policy lapsed do not have insurance cover, and therefore no premiums are deducted. Prior to 2004, insurance was mandatory, with no opt-out provisions. In 2004, GESB introduced opt-out insurance provisions for its members. The improvements to insurance cover in July 2008 further enhanced the insurance offering for all members and provided greater flexibility for members to tailor insurance to suit their needs and also extended insurance cover for members over 60 when insurance cover previously ceased. The premiums charged to members cover the premium cost of the group life insurance policy. An administration fee is charged by GESB to cover GESB’s costs in administering insurance, including systems maintenance, account establishment, claims processing and member inquiries. In recognition that a number of casual workers in the public sector have made one-off superannuation guarantee contributions—for example, Electoral Commission employees—a new employees kit is distributed to those employees that informs them of the automatic insurance cover and explains that employees should consider their insurance needs. The information kit also includes an opt-out form for the employees’ convenience. (3) GESB members have always had automatic insurance cover and it is standard industry practice to offer insurance on this basis. All members are notified of their automatic insurance cover through a welcome letter when joining the fund, have ongoing visibility of their insurance cover through member statements and member online and also receive specific insurance communications. In addition, when superannuation guarantee contributions cease on a member’s account, GESB writes to the member to advise him or her of his or her options to ensure the cover continues to meet that member’s needs.
(3) If yes to (2), what is the justification for this backdoor method of exhausting small accounts when such insurance premiums are levied under a deeming provision with no direct authorisation or, in some cases, knowledge of the policyholder? Hon HELEN MORTON replied: I thank the honourable member for some notice of this question. (1) Member accounts with balances of less than $1 000 receive member protection. Member protection, under superannuation law, prescribes that the annual administration charge for accounts with a balance of less than $1 000 cannot exceed investment earnings in that period. However, commonwealth superannuation legislation allows superannuation funds to charge a $10 administration fee to protected accounts. Industry funds charge either a member protection fee based on a percentage of the net fund assets, or a $10 administration fee, or both. GESB introduced a $10 administration fee on 1 June 2009, and advised members of this change in March 2009. (2) GESB only deducts insurance premiums — (a) for new public sector employees. These members receive automatic insurance cover, but can increase, decrease, vary or opt out of all insurance cover at any time. These members have small account balances at the beginning as they accumulate a larger superannuation balance over time. (b) when the member continues to have insurance and has not elected to opt out. Past public sector employees whose insurance policy lapsed do not have insurance cover, and therefore no premiums are deducted. Prior to 2004, insurance was mandatory, with no opt-out provisions. In 2004, GESB introduced opt-out insurance provisions for its members. The improvements to insurance cover in July 2008 further enhanced the insurance offering for all members and provided greater flexibility for members to tailor insurance to suit their needs and also extended insurance cover for members over 60 when insurance cover previously ceased. The premiums charged to members cover the premium cost of the group life insurance policy. An administration fee is charged by GESB to cover GESB’s costs in administering insurance, including systems maintenance, account establishment, claims processing and member inquiries. In recognition that a number of casual workers in the public sector have made one-off superannuation guarantee contributions—for example, Electoral Commission employees—a new employees kit is distributed to those employees that informs them of the automatic insurance cover and explains that employees should consider their insurance needs. The information kit also includes an opt-out form for the employees’ convenience. (3) GESB members have always had automatic insurance cover and it is standard industry practice to offer insurance on this basis. All members are notified of their automatic insurance cover through a welcome letter when joining the fund, have ongoing visibility of their insurance cover through member statements and member online and also receive specific insurance communications. In addition, when superannuation guarantee contributions cease on a member’s account, GESB writes to the member to advise him or her of his or her options to ensure the cover continues to meet that member’s needs.
Hon HELEN MORTON replied: I thank the honourable member for some notice of this question. (1) Member accounts with balances of less than $1 000 receive member protection. Member protection, under superannuation law, prescribes that the annual administration charge for accounts with a balance of less than $1 000 cannot exceed investment earnings in that period. However, commonwealth superannuation legislation allows superannuation funds to charge a $10 administration fee to protected accounts. Industry funds charge either a member protection fee based on a percentage of the net fund assets, or a $10 administration fee, or both. GESB introduced a $10 administration fee on 1 June 2009, and advised members of this change in March 2009. (2) GESB only deducts insurance premiums — (a) for new public sector employees. These members receive automatic insurance cover, but can increase, decrease, vary or opt out of all insurance cover at any time. These members have small account balances at the beginning as they accumulate a larger superannuation balance over time. (b) when the member continues to have insurance and has not elected to opt out. Past public sector employees whose insurance policy lapsed do not have insurance cover, and therefore no premiums are deducted. Prior to 2004, insurance was mandatory, with no opt-out provisions. In 2004, GESB introduced opt-out insurance provisions for its members. The improvements to insurance cover in July 2008 further enhanced the insurance offering for all members and provided greater flexibility for members to tailor insurance to suit their needs and also extended insurance cover for members over 60 when insurance cover previously ceased. The premiums charged to members cover the premium cost of the group life insurance policy. An administration fee is charged by GESB to cover GESB’s costs in administering insurance, including systems maintenance, account establishment, claims processing and member inquiries. In recognition that a number of casual workers in the public sector have made one-off superannuation guarantee contributions—for example, Electoral Commission employees—a new employees kit is distributed to those employees that informs them of the automatic insurance cover and explains that employees should consider their insurance needs. The information kit also includes an opt-out form for the employees’ convenience. (3) GESB members have always had automatic insurance cover and it is standard industry practice to offer insurance on this basis. All members are notified of their automatic insurance cover through a welcome letter when joining the fund, have ongoing visibility of their insurance cover through member statements and member online and also receive specific insurance communications. In addition, when superannuation guarantee contributions cease on a member’s account, GESB writes to the member to advise him or her of his or her options to ensure the cover continues to meet that member’s needs.
I thank the honourable member for some notice of this question. (1) Member accounts with balances of less than $1 000 receive member protection. Member protection, under superannuation law, prescribes that the annual administration charge for accounts with a balance of less than $1 000 cannot exceed investment earnings in that period. However, commonwealth superannuation legislation allows superannuation funds to charge a $10 administration fee to protected accounts. Industry funds charge either a member protection fee based on a percentage of the net fund assets, or a $10 administration fee, or both. GESB introduced a $10 administration fee on 1 June 2009, and advised members of this change in March 2009. (2) GESB only deducts insurance premiums — (a) for new public sector employees. These members receive automatic insurance cover, but can increase, decrease, vary or opt out of all insurance cover at any time. These members have small account balances at the beginning as they accumulate a larger superannuation balance over time. (b) when the member continues to have insurance and has not elected to opt out. Past public sector employees whose insurance policy lapsed do not have insurance cover, and therefore no premiums are deducted. Prior to 2004, insurance was mandatory, with no opt-out provisions. In 2004, GESB introduced opt-out insurance provisions for its members. The improvements to insurance cover in July 2008 further enhanced the insurance offering for all members and provided greater flexibility for members to tailor insurance to suit their needs and also extended insurance cover for members over 60 when insurance cover previously ceased. The premiums charged to members cover the premium cost of the group life insurance policy. An administration fee is charged by GESB to cover GESB’s costs in administering insurance, including systems maintenance, account establishment, claims processing and member inquiries. In recognition that a number of casual workers in the public sector have made one-off superannuation guarantee contributions—for example, Electoral Commission employees—a new employees kit is distributed to those employees that informs them of the automatic insurance cover and explains that employees should consider their insurance needs. The information kit also includes an opt-out form for the employees’ convenience. (3) GESB members have always had automatic insurance cover and it is standard industry practice to offer insurance on this basis. All members are notified of their automatic insurance cover through a welcome letter when joining the fund, have ongoing visibility of their insurance cover through member statements and member online and also receive specific insurance communications. In addition, when superannuation guarantee contributions cease on a member’s account, GESB writes to the member to advise him or her of his or her options to ensure the cover continues to meet that member’s needs.
(1) Member accounts with balances of less than $1 000 receive member protection. Member protection, under superannuation law, prescribes that the annual administration charge for accounts with a balance of less than $1 000 cannot exceed investment earnings in that period. However, commonwealth superannuation legislation allows superannuation funds to charge a $10 administration fee to protected accounts. Industry funds charge either a member protection fee based on a percentage of the net fund assets, or a $10 administration fee, or both. GESB introduced a $10 administration fee on 1 June 2009, and advised members of this change in March 2009. (2) GESB only deducts insurance premiums — (a) for new public sector employees. These members receive automatic insurance cover, but can increase, decrease, vary or opt out of all insurance cover at any time. These members have small account balances at the beginning as they accumulate a larger superannuation balance over time. (b) when the member continues to have insurance and has not elected to opt out. Past public sector employees whose insurance policy lapsed do not have insurance cover, and therefore no premiums are deducted. Prior to 2004, insurance was mandatory, with no opt-out provisions. In 2004, GESB introduced opt-out insurance provisions for its members. The improvements to insurance cover in July 2008 further enhanced the insurance offering for all members and provided greater flexibility for members to tailor insurance to suit their needs and also extended insurance cover for members over 60 when insurance cover previously ceased. The premiums charged to members cover the premium cost of the group life insurance policy. An administration fee is charged by GESB to cover GESB’s costs in administering insurance, including systems maintenance, account establishment, claims processing and member inquiries. In recognition that a number of casual workers in the public sector have made one-off superannuation guarantee contributions—for example, Electoral Commission employees—a new employees kit is distributed to those employees that informs them of the automatic insurance cover and explains that employees should consider their insurance needs. The information kit also includes an opt-out form for the employees’ convenience. (3) GESB members have always had automatic insurance cover and it is standard industry practice to offer insurance on this basis. All members are notified of their automatic insurance cover through a welcome letter when joining the fund, have ongoing visibility of their insurance cover through member statements and member online and also receive specific insurance communications. In addition, when superannuation guarantee contributions cease on a member’s account, GESB writes to the member to advise him or her of his or her options to ensure the cover continues to meet that member’s needs.
(2) GESB only deducts insurance premiums — (a) for new public sector employees. These members receive automatic insurance cover, but can increase, decrease, vary or opt out of all insurance cover at any time. These members have small account balances at the beginning as they accumulate a larger superannuation balance over time. (b) when the member continues to have insurance and has not elected to opt out. Past public sector employees whose insurance policy lapsed do not have insurance cover, and therefore no premiums are deducted. Prior to 2004, insurance was mandatory, with no opt-out provisions. In 2004, GESB introduced opt-out insurance provisions for its members. The improvements to insurance cover in July 2008 further enhanced the insurance offering for all members and provided greater flexibility for members to tailor insurance to suit their needs and also extended insurance cover for members over 60 when insurance cover previously ceased. The premiums charged to members cover the premium cost of the group life insurance policy. An administration fee is charged by GESB to cover GESB’s costs in administering insurance, including systems maintenance, account establishment, claims processing and member inquiries. In recognition that a number of casual workers in the public sector have made one-off superannuation guarantee contributions—for example, Electoral Commission employees—a new employees kit is distributed to those employees that informs them of the automatic insurance cover and explains that employees should consider their insurance needs. The information kit also includes an opt-out form for the employees’ convenience. (3) GESB members have always had automatic insurance cover and it is standard industry practice to offer insurance on this basis. All members are notified of their automatic insurance cover through a welcome letter when joining the fund, have ongoing visibility of their insurance cover through member statements and member online and also receive specific insurance communications. In addition, when superannuation guarantee contributions cease on a member’s account, GESB writes to the member to advise him or her of his or her options to ensure the cover continues to meet that member’s needs.
(b) when the member continues to have insurance and has not elected to opt out. Past public sector employees whose insurance policy lapsed do not have insurance cover, and therefore no premiums are deducted. Prior to 2004, insurance was mandatory, with no opt-out provisions. In 2004, GESB introduced opt-out insurance provisions for its members. The improvements to insurance cover in July 2008 further enhanced the insurance offering for all members and provided greater flexibility for members to tailor insurance to suit their needs and also extended insurance cover for members over 60 when insurance cover previously ceased. The premiums charged to members cover the premium cost of the group life insurance policy. An administration fee is charged by GESB to cover GESB’s costs in administering insurance, including systems maintenance, account establishment, claims processing and member inquiries. In recognition that a number of casual workers in the public sector have made one-off superannuation guarantee contributions—for example, Electoral Commission employees—a new employees kit is distributed to those employees that informs them of the automatic insurance cover and explains that employees should consider their insurance needs. The information kit also includes an opt-out form for the employees’ convenience.
The premiums charged to members cover the premium cost of the group life insurance policy. An administration fee is charged by GESB to cover GESB’s costs in administering insurance, including systems maintenance, account establishment, claims processing and member inquiries. In recognition that a number of casual workers in the public sector have made one-off superannuation guarantee contributions—for example, Electoral Commission employees—a new employees kit is distributed to those employees that informs them of the automatic insurance cover and explains that employees should consider their insurance needs. The information kit also includes an opt-out form for the employees’ convenience.
In recognition that a number of casual workers in the public sector have made one-off superannuation guarantee contributions—for example, Electoral Commission employees—a new employees kit is distributed to those employees that informs them of the automatic insurance cover and explains that employees should consider their insurance needs. The information kit also includes an opt-out form for the employees’ convenience.
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