In August 2021, we wrote about the impending merger of QSuper and SunSuper and what effect this may have on members’ disability insurance benefits like TPD, income protection and death benefits. In February 2022, Australia saw the largest superannuation fund merger in its history when Sunsuper and QSuper merged to become the Australian Retirement Trust (ART). Shortly after, in April 2022, the Australia Post Superannuation Scheme was also merged into the Australian Retirement Trust.
What funds have merged to become ART?
When we look back, we see the following super fund changes and mergers:
- Recruitment Super became Kinetic Super in 2013;
- Kinetic Super then merged into Sunsuper in 2018;
- AustSafe Super merged into Sunsuper in 2019;
- SunSuper merged with QSuper in 2022.
The historical merger of Sunsuper and QSuper means that many different roads have led its members to the Australian Retirement Trust.
This merger raises a very important question for the fund’s members, particularly those who were original members of former funds.
“What does the merger mean for members’ Total Permanent Disablement (TPD), Income Protection (IP) and death benefits?”
For ART members who were previously with QSuper
Members of QSuper before the merger are now members of ART but still remain in the QSuper division.
Given these members have remained in the QSuper division of ART, most of these members have maintained their reasonably generous default level of death and TPD insurance cover, as well as income protection, which covers up to 75% of their pre-disability income, and with a superannuation contribution made on top of that.
It is important to note that since the merger, only Queensland Government employees can become members of the QSuper division of ART. However, any member of QSuper before the merger, regardless of their area of employment, will remain QSuper members with original QSuper benefits until their account is closed.
For ART members who were previously with Sunsuper
Members of Sunsuper before the merger are now members of ART.
Unlike QSuper, Sunsuper does not have its own division in ART, but generally, we have not seen changes to previous Sunsuper members’ TPD or IP insurance benefits. Most of these members have maintained their default level of death, and TPD Assist cover. TPD Assist refers to a TPD lump sum payment in instalments over a number of years rather than as a single lump sum.
Regarding income protection insurance cover, previous members of Sunsuper were not provided any default income protection insurance cover and similarly, have not been provided with default income protection insurance cover since these members have joined ART.
If these members wish to obtain income protection insurance cover through ART, they can apply directly to the fund for opt-in income protection insurance cover within 120 days of joining the fund or apply for tailored income protection insurance cover at any time. We always recommend speaking to a financial adviser before making any financial decisions.
If my insurance benefits have not changed, why is it important to know who my super fund is?
It is important to know who your super fund is because, for most people, their superannuation fund is their biggest asset, which they rely upon in their retirement. Familiarity with your super fund and its disability insurance products (like TPD and income protection) becomes equally as important if you ever find yourself having to cease work because of illness or injury.
Ceasing work because of illness and injury can be a very stressful time. Most people rely on their steady income to pay their bills and survive the ever-increasing cost of living. For that reason, the sudden stopping of income because of illness or injury places a great amount of pressure on an injured person and on those people who are depending on them.
By knowing exactly who your super fund is and what insurance cover you have in place, you can minimise any unnecessary delays by reaching out directly to the relevant super fund and beginning the claims process as soon as possible.
Get help from a disability insurance lawyer
At Berrill and Watson, we can investigate for you:
- who your current super fund is (including if you have multiple funds, which can result in multiple claims if you stop work due to illness or injury);
- who you previously held superannuation accounts with; and
- any possible insurance benefits that you may be entitled to.
We provide this service free of charge.
If you believe that you may have a possible insurance claim with ART or any other disability insurance policy (either inside or outside super), help take the stress out of your potential claim and get in touch with our TPD and income protection team for some free advice.
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.