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Putting Members' Interests First (PMIF) legislation

The Australian government recently passed the Putting Members' Interest First legislation, which took effect on 1 April 2020. If you’re a member who recently joined us, currently have a low balance, or are under the age of 25, you may be impacted by these changes.

What is the Putting Members' Interests First legislation (PMIF)?

The PMIF legislation is designed to protect members' super savings from unnecessary erosion by insurance premiums. This legislation is in addition to the Protecting Your Super Package (PYSP) legislation introduced by the government on 1 July 2019, designed to protect member’s super savings from unnecessary fees and insurance premiums.

By law, most superannuation funds are required to provide insurance cover to their members to ensure that they’re covered in the event of serious injury or death – events of which you or your family may not be able to afford out of pocket. The PMIF legislation required super funds to:

  1. Cancel insurance cover for members with balances below $6,000 (where they didn't request to keep the cover) from 1 April 2020, and
  2. From 1 April 2020, only start insurance cover for members where they have reached a balance of $6,000 and are age 25 or older.

    Please note that Australian Retirement Trust has chosen to apply this rule from 29 March 2020.

What does this mean for Australian Retirement Trust members?

For members who joined prior to 1 April 2020

If we have stopped your cover due the PMIF legislation, you could be eligible to have your insurance cover restart automatically in the future.

For new and existing members from 29 March 2020

For automatic Standard cover to commence on your account, you will need to be at least age 25 or over, reached a balance of at least $6,000, and receiving Superannuation Guarantee (SG) contributions from your employer (this requirement may not apply to all Super Savings – Corporate).

Are there any exceptions to the new rules?

From 29 March 2020, for automatic Standard cover to commence on your account you will need to meet the above age and balances rules unless you:

  • have an employer who pays your insurance premiums in full, or
  • elect to opt-in for insurance cover before attaining age 25 or reaching an account balance of $6,000.


Example 1 – Melvin (age 33)

Melvin is 33, and his employer has opened a Super Savings Accumulation account for him by making an SG contribution of $300 on 3 April 2020.

Although Melvin is over 25 and his employer has made an SG contribution into his account, Australian Retirement Trust would not automatically provide him with insurance cover until his balance is over $6,000.

On 15 April, Melvin chooses to consolidate his other super into his Australian Retirement Trust account, and rolls in $6,000. Melvin’s insurance cover would now commence on 15 April (the date the money was received) as his balance after receiving his rollover would now be over $6,000 and an SG contribution has been received in the prior 120 days.

Example 2 – Michelle (age 24)

Michelle is 24, and her employer has opened a Super Savings Accumulation account for her by making an SG contribution of $800 on the 28 April. On 30 April, Michelle then consolidates all her other super accounts into Australian Retirement Trust, and rolls in $8,000.

Although Michelle’s balance is now above $6,000 as at 30 April, she would not be automatically provided with insurance cover until she turns 25 and Australian Retirement Trust are receiving SG contributions on her behalf at that time.


What to do if your cover was cancelled at 1 April 2020

In what circumstances will insurance cover automatically restart?

Under new product rules introduced from 29 March 2020 we will automatically restart Standard insurance cover for members if they:

  • Have attained age 25,
  • Have a balance of at least $6,000, and
  • Are receiving Superannuation Guarantee (SG) contributions from their employer.

Standard cover will recommence from the date of your next SG contribution after attaining age 25 and a balance of over $6,000.

Can I request for my previous cover to restart?

No, the 'Restart your insurance cover' offer expired on 30 May 2020. However, you may still be eligible to have your insurance cover restart automatically in the future.

Other important information

For any events between the date your cover was cancelled and the date your cover is restarted, you won't be eligible to make a claim should you need to. Limited cover rules will apply to any restarted cover until you satisfy the At Work requirements for 30 consecutive days. Please refer to your relevant Insurance guide for more information and any additional conditions that may apply, including definitions for Limited cover and At Work.