After months of planning, the merger or transfer of BT Super into Mercer was finalised on 1 April 2023. We understand that the transfer means that Mercer now has approximately 850,000 members. Former BT Super members have had their disability insurance policies, like total and permanent disability and income protection, transferred to Mercer. This change in TPD and IP cover may have significant implications for former BT Super members.
BT Super members’ TPD and IP cover transferred to Mercer
Prior to the merger, BT Super members had access to a number of different products, including BT Super for Life and BT Business Super. All former BT Super members have now been transferred into Mercer accounts.
We understand that, in each case, BT Super members have been transferred into a Mercer fund that is roughly the same as the BT Super account which they held (ie similar fees and insurance entitlements). For example, one former BT Business Super member that we are assisting with a TPD claim has now been transferred to the Mercer Smart Path account, which Mercer says is a similar account to her old BT Super account.
Transfer of former BT Super member's disability insurance may have significant implications
The transfer of former BT member's disability insurance cover to Mercer insurance products may have significant implications for the TPD and income protection entitlements of those members.
We understand that BT Super members that are transferred to Mercer will maintain their existing insurance entitlements at similar or the same levels and policy terms. However, the administration of claims is likely to be different under Mercer compared to BT Super. Also, there will be times when the insurance entitlements will not come across to Mercer in the way you would expect.
Under the default insurance arrangements available to BT Super for Life members, you would have been entitled to death, TPD and income protection insurance benefits. These insurance benefits were offered to most new BT Super members, as default insurance coverage, which is insurance coverage that you get when you join the fund without having to make any application for insurance.
Importantly, even though BT Super members got cover without having to make any application, there were some limitations on the cover, and you were usually not entitled to claim for conditions which “first manifest” (eg, pre-existing conditions) before the cover started (when you became a member of the fund).
It’s likely that these original default insurance arrangements will carry on unchanged for most former BT Super members, but changes are possible in the future as Mercer looks to fully integrate those members by moving them across to Mercer disability insurance products.
Difficulties accessing TPD and IP claims’ information from Mercer
We have found in our recent dealings with Mercer that getting information about former BT Super member accounts and entitlements has been difficult.
It is hard to get Mercer representatives on the phone, and we have experienced long delays with requests to Mercer for updated authorities when requesting basic documents like insurance policies and trust deeds. Hopefully, these issues resolve over time. However, if you are having issues getting information from Mercer, please do not hesitate to get in touch for some free advice on the best ways to go about getting the information which you need.
Get help from a TPD and disability insurance lawyer
If you are a former BT Super member that is now a Mercer member, it’s likely that your death and disability insurance will continue with Mercer. However, there are circumstances where the insurance coverage may be altered or your specific circumstances may mean that you no longer have cover.
If you are a former BT Super member and you are looking to make a claim for TPD, Terminal Illness or Income Protection insurance benefits, we recommend that you get in touch for some free advice before making your claim.
Contacting Berrill & Watson
📞 Melbourne: 03 9448 8048
📞 Brisbane: 07 3013 4300
📞 Anywhere else in Australia: 03 9448 8048
How we charge
We are Australia's best-value superannuation/insurance law firm. Other law firms charge nearly double (& sometimes more than double) what we charge. So, if you get a quote from them, or have a cost agreement, ask us what we will charge you.