Atwood Oceanics Australia Superannuation Plan Insurance Guide

Transcription

1 Atwood Oceanics Australia Superannuation Plan Insurance Guide Prepared: 14 April 2018 The issuer and Trustee of The Executive Superannuation Fund (ABN: , RSE Registration No R ) is Equity Trustees Superannuation Limited ABN: , Australian Financial Services Licence ( AFSL ) RSE Licence No L , Address: GPO Box 2307 Melbourne VIC 3001 Ph (03) Fax (03) The Executive Superannuation Fund Unique Superannuation Identifier: The Administrator of The Executive Superannuation Fund is OneVue Super Member Administration Pty Ltd (ABN: , AFSL No: ), Address: PO Box 67, Australia Square NSW Ph: address: execsuper@onevue.com.au. Plan website: 1

2 The information in this document forms part of the Employer Sponsored Product Product Disclosure Statement ( PDS ) for members in the Atwood Oceanics Australia Superannuation Plan ( the Plan ), a plan in the Employer Sponsored Members Product of The Executive Superannuation Fund ( the Fund ) dated 14 April It relates to current employees of Atwood Oceanics Australia Pty Limited (Atwood), who are current members of the Plan. Atwood is also referred to as Employer or your Employer in this document. The information provided in the PDS and this Insurance Guide is a summary of the benefits and terms and conditions of the Plan however, the terms of the trust deed governing the Plan have precedence over anything in the PDS and this Insurance Guide. To the extent that the PDS and Insurance Guide provide general advice, the advice does not take into account your individual financial situation, circumstances or needs. You should take these into account when making decisions about your benefit in the Plan, and consult an appropriately qualified financial adviser where required. All parties named in the PDS and Insurance Guide have consented to being named in the form and context in which they have been named and have not withdrawn their consent prior to printing of the PDS and Insurance Guide. Any statements in the PDS and Insurance Guide attributable to third parties have also been consented to by those parties. Contents Insurance in your super... 3 When cover starts... 3 When cover ceases... 3 Death/TPD insurance benefits (including terminal illness benefits)... 4 Insurance premiums... 4 Payment of the terminal illness benefit... 4 Reduction of insured benefits... 6 Exclusions... 6 Insurance upon termination of employment with your Employer... 6 Continuation option... 6 Insurance Policy terms and conditions... 6 Other Information... 7 Further information and how to contact us

3 Insurance in your super Members who are permanent employees of Atwood are automatically provided with the following types of insurance cover through the Plan, if they meet relevant eligibility criteria: Death (including terminal illness); and Total and Permanent Disablement ( TPD ), via an insurance arrangement with the Plan s insurer. The payment of any insured benefit is, therefore, subject to the terms and conditions of the insurance policy and the acceptance of any claim by the Plan s insurer. To be eligible for cover a member must be an Australian resident and less than 70 years of age and the Employer must be paying (or accruing a liability to pay, and subsequently pays) superannuation contributions on the member s behalf to the Plan. In most cases, an amount of insurance cover (referred to as default or Standard cover) will be granted to you automatically from the date you commence employment with your Employer (provided you meet relevant eligibility criteria described above). See below for further information about when cover commences and ceases. This applies to all types of cover including cover for terminal illness. When cover starts As noted above, generally, cover commences upon becoming employed by your Employer and meeting the eligibility criteria in the insurance policy. Cover is determined in accordance with the provisions of the Trust Deed and the Plan s insurance policy. If you are not in active employment (as defined in the insurance policy) on the date your cover commences, you will be provided with limited cover until you have been in active employment for two consecutive months. Where cover does not commence, in respect of a person s most recent employment or engagement with the Employer within 120 days of the person first becoming an employee of the Employer, limited cover also applies until you are accepted for full cover by the Plan s insurer. Your work status is based on information provided by your Employer to the Trustee. For more information contact the Fund Administrator. A person is in "active employment" if they are employed or engaged by the Employer to carry out identifiable duties, are actually performing those duties and, in the insurer s opinion, are not restricted by illness or injury from being capable of performing those duties and the duties of their normal occupation on a full time basis (at least 35 hours per week) even if not then working on a full time basis. Limited cover only provides cover for Death (including terminal illness) and TPD arising from an illness that first becomes apparent, or an injury that first occurs, on or after the date cover commenced. Additional exclusions apply to limited cover. If you were previously insured under the Plan s insurance policy and that cover ended, cover may not re-commence. If, after cover ended, you exercised a continuation option (see below), cover in the Plan cannot re-commence. When cover ceases Cover ceases upon termination of employment with your Employer, ceasing membership of the Plan, the date a benefit under the insurance policy becomes payable, upon transfer to the Personal Product of the Fund or attaining age 70. Cover also ceases on the earliest of: your date of death; the date your signed and dated written request to cancel your cover is received by the Fund Administrator (within the opt out period described on the next page); the date on which you have been on approved* unpaid leave for a continuous period longer than 12 months; the commencement date of unpaid leave without approval*; and the date when premiums are unpaid. *You must receive written approval from your Employer prior to the commencement of any unpaid leave, and be employed on a permanent basis immediately before going on unpaid leave. The benefit payable after any of these cessation of cover events is therefore the same as the withdrawal benefit i.e. the full balance of your account within the Plan. However, in some cases, cover is extended for a short period (60 days) after the date that cover ordinarily ceases because of a cessation of cover event described in the policy. If a person is eligible to exercise a continuation option after the cessation of cover, their Death or TPD (where TPD results from an accident) during the extended cover period but before the continuation option is exercised may qualify for an insured benefit provided the benefit would have been payable had cover not ceased. If a person is ineligible for the continuation option after the cessation of cover, their death during the extended cover period may also qualify for an insured benefit provided certain conditions are met (for example, the person must be under age 70 and at the time cover ceased and no longer employed by the Employer). You are able to opt out of (that is, cancel) your Standard insurance cover within 90 days of joining the Plan or upon each anniversary of joining the Plan. It is important to note, that after cancelling any insurance cover, any future requests to re-instate the cover will be subject to underwriting by the Plan s insurer. It is also important to note 3

4 that in some circumstances insurance cover may recommence after it has ceased, however special terms and conditions apply. Death/TPD insurance benefits (including terminal illness benefits) In the event of your death or the insurer being satisfied that you became totally and permanently disabled whilst you are a current employee of your Employer and an insured member of the Plan, you, in the case of a TPD benefit, or your nominated beneficiaries (or such other party as the Trustee considers appropriate) in the case of a death benefit may receive an amount of insurance as applicable to your circumstances in addition to the full balance of your account in the Plan. Usually, the amount of insured benefit is $300,000 however for members over the age of 60, the insured benefit payable on total and permanent disablement reduces by 10% each year, from 1 July in the year in which the insured member turns 61 years of age, until it reduces by 50% at 1 July in the year in which the member turns age 65. Any limitations on your cover may affect the insured amount. An example of the calculation of the insured benefit payable to an insured member aged under 61 year as a result of death or total and permanent disablement while an insured member is as follows: Example Death and TPD Insured Benefit $300,000 Account balance (say) $75,000 Total benefit payable* $375,000 * Taxation may apply. See Section 3 of the Reference Guide for further information. The insured terminal illness benefit amount is the same as the insured death benefit amount. Note: You cannot change the amount of insured benefits (that is, you cannot reduce or increase the amount of your insurance cover). Insurance premiums If you have insurance cover in the Plan, your Employer pays for insurance premiums on your behalf until your cessation of employment. The cost of this insurance does not reduce your account. The insurance premium (including stamp duty) paid by your Employer is calculated at a rate of $5.11 per $1,000 of insurance provided to insured members, per year. Your Employer pays the insurance premium amount directly to the Plan s insurer. Payment of the terminal illness benefit If you have Death insurance cover, in the event of terminal illness, an insured terminal illness benefit may be payable. An insured member is regarded as terminally ill if all of the following happens: you suffer a sickness; at least two medical practitioners, one of whom specialises in the sickness from which you have suffered, have certified, jointly or separately in writing, that you will, despite reasonable medical treatment, die from the sickness within a period that ends not more than 12 months after the date of the certification (the certification period); the insurer is satisfied from medical or other evidence that you will, despite reasonable medical treatment, die from the sickness within the certification period; for each of the certifications, the certification period has not ended. The sickness and date of the certifications must occur while a member is insured under the Plan s insurance policy. If an insured terminal illness benefit is payable, all other cover ceases. A terminal illness benefit will be paid to you tax free on provision of the necessary medical evidence, subsequent to approval by the Plan s insurer and Trustee. Please note, the Government has amended the provision which allows people suffering a terminal condition to access their superannuation account balance early. Before 1 July 2015, people with a terminal medical condition could only access their superannuation account balance early if they could get certification from two medical specialists that they had less than 12 months to live. On 1 July 2015, the Government changed this period to 24 months, meaning more terminally ill people can access their superannuation account balance early. If you fall into this category and wish to claim your superannuation early, it is advisable for you to ensure that you leave a sufficient account balance to cover your Insurance Premiums. Insurance was not covered in the new provisions and can still only be accessed if you have less than 12 months to live. Payment of the Death benefit The death benefit is a cash lump sum payable generally to your dependants or, if there are no dependants, the legal personal representative of your estate. You can make a binding or non-binding nomination of those persons whom you would prefer to receive your benefit in the event of your death (refer to Section 1 of the Fund s Reference Guide for more details). Total and Permanent Disablement what does this mean? The definition of TPD in relation to insured benefits within the Plan is based on definitions included within the Plan s insurance policy. Note: Different definitions apply to insured members whose cover in the Plan commenced on or before 1 July 4

5 2014. For more information contact the Fund Administrator. In accordance with the Plan s insurance policy, an insured individual (whose cover in the Plan commenced after 1 July 2014) will be totally and permanently disabled (and will be eligible for an insured TPD benefit under the policy) if the conditions in one of paragraphs (a), (b), (c) or (d) below are met. A person aged over 65 at the date of disablement must satisfy the conditions in paragraph (d) following Paragraph (a) Medical Condition All of the following paragraphs (i), (ii), (iii) and (iv) apply to the person: (i) the person was, on the date of disablement (as defined in the Plan s insurance policy), aged 65 years or less; (ii) the person was absent from all work as a result of suffering cardiomyopathy, primary pulmonary hypertension, major head trauma, motor neurone disease, multiple sclerosis, muscular dystrophy, paraplegia, quadriplegia, hemiplegia, diplegia, tetraplegia, dementia and Alzheimer s disease, Parkinson s disease, blindness, loss of speech, loss of hearing, chronic lung disease or severe rheumatoid arthritis (each as defined in the Plan s insurance policy); (iii) the insurer considers, on the basis of medical and other evidence satisfactory to the insurer, the person is unlikely ever to be able to engage in any occupation, whether or not for reward; and (iv) the person is likely to be so disabled for life; OR Paragraph (b) Unlikely to return to work The person: (i) was, immediately before the date of disablement, an employee of the Employer on a permanent basis and for at least a minimum of 15 hours per week; (ii) was, on the date of disablement (as defined in the Plan s insurance policy), aged 65 years or less; and (ii) as a result of illness or injury, has been absent from all work for 6 consecutive months from the date of disablement and the insurer considers, on the basis of medical and other evidence satisfactory to the insurer, the person is unlikely ever to be able to engage in any occupation, whether or not for reward; OR Paragraph (c) Specific loss The person was, on the date of disablement (as defined in the Plan s insurance policy), aged 65 years or less and suffers, as a result of illness or injury: (i) the total and permanent loss of the use of two limbs; (iii) the total and permanent loss of the use of one limb and blindness in one eye; and in the insurer s opinion, on the basis of medical and other evidence satisfactory to the insurer, the person is unlikely ever to be able to engage in any occupation, whether or not for reward. Where: Limb means the whole hand below the wrist or whole foot below the ankle; and Blindness means the permanent loss of sight to the extent that visual acuity is 6/60 or less, or to the extent that the visual field is reduced to 20 degrees or less of arc. OR Paragraph (d) Loss of independent existence The person is, as a result of illness or injury, totally unable to perform without the physical assistance of another person any two of the following activities of daily living: Dressing the ability to put on and take off clothing; Toileting the ability to use the toilet, including getting on and off; Mobility the ability to get in and out of bed and a chair; Continence the ability to control bowel and bladder function; Feeding the ability to get food from a plate into the mouth; and in the insurer s opinion, the person is permanently and irreversibly unable to do so for life and the insurer considers, on the basis of medical and other evidence satisfactory to the insurer, the person is unlikely ever to be able to engage in any occupation, whether or not for reward. Occupation, for the purpose of the TPD definitions above means any occupation that a person can perform, on a full time or part time basis, based on skills and knowledge the person has acquired through education, training or experience. Please contact the Fund Administrator or refer to the Plan s insurance policy, available on request by contacting the Fund Administrator, for further details including an explanation of other important terms used in the definitions of TPD. Payment of the TPD benefit You will be eligible for a TPD benefit if both the Trustee and the Plan s insurer consider that you have satisfied the conditions (including relevant definitions) for such a benefit as set out in the insurance policy. The date of disablement, which is important in determining any TPD benefit entitlement, depends on the definition of TPD under which a claim is made, contact the Fund Administrator for more information. (ii) blindness in both eyes; or 5

6 The Trustee must also be satisfied that any insured TPD benefit is payable under the Fund s Trust Deed and superannuation legislation Reduction of insured benefits The Trustee may adjust your Death, terminal illness or TPD benefit if you delay making a claim (or potential claim) or if you do not provide information as required or in any way prejudicial to your insurance cover. Incorrect or incomplete information may result in a delayed payment or no payment at all. If for any reason the insurer refuses or restricts your insurance cover or, having granted insurance, denies all or part of your claim, your benefit may also be adjusted. Exclusions A benefit will not be paid for an insured person if his or her death, terminal illness or TPD is directly or indirectly caused by war, including any act of war (whether declared or not), revolution, invasion, rebellion or civil unrest. A benefit will not be paid for death caused directly or indirectly by a pandemic illness or any other condition which is directly or indirectly caused by, or related to, the pandemic illness, where: we have given the Trustee at least 14 days prior notice of the operation of this pandemic illness exclusion, and the death occurs within 30 days of the death cover starting or restarting. A pandemic illness is an illness for which a pandemic alert advisory, notification, declaration or similar publication is issued by the Australian Government or the World Health Organisation. In the case of limited cover, a benefit will not be paid: for death due to suicide which happens within 13 months of the cover commencing (whether or not the person is sane at the time); or if terminal illness or TPD is due to intentional self-inflicted injury or infection or attempted suicide (whether or not the person is sane at the time). While cover applies to an insured member while outside Australia, the insurer may apply an exclusion or special condition and the insured member is required to return to Australia for assessment of a terminal illness or TPD claim. Insurance upon termination of employment with your Employer Upon termination of your employment with your Employer, any Death and TPD cover you held in the Plan will not automatically transfer to the Personal Product of the Fund. Continuation option Within 60 days of the cessation of your cover (for example, because of voluntary termination of employment with your Employer) you may elect to continue your death insurance cover outside the Plan, by contacting the Fund Administrator about taking out a continuation option, provided you are eligible. Subject to some conditions, a continuation option allows you to be covered for any amount up to the level of insurance you had on the date your cover in the Plan ceased. To be eligible to exercise the continuation option you must have ceased employment with your Employer and ceased membership of the fund, other eligibility conditions apply and are available on request from the Fund Administrator. To obtain cover under this continuation option members do not have to undergo full medical underwriting, but may be required to complete an AIDS declaration and a blood test for HIV. If you take out a continuation option, you will effectively be taking out a new insurance policy directly with Plan s insurer (the insurance cover is not provided via the Plan). The insurance premiums will be based on retail premium rates and will be payable by you personally, rather than by your Employer. Cover under a continuation option will commence from the date your application for cover is approved and confirmed by the insurer. As such, there may be a period after you have ceased employment when you are not insured. A continuation option is available for Death insurance cover provided you were aged less than 60 years and working at least 15 hours per week (or some other number agreed by the insurer) at the date cover in the Plan ceased. The request for an individual death insurance policy, and applicable premium, must be received by the insurer within 30 days of cover in the Plan ceasing. Other terms and conditions apply, including conditions as determined by the insurer for any individual insurance policy. For further information, including relevant eligibility criteria and conditions, contact the Fund Administrator. Voluntary Cover You may be eligible to apply for voluntary insurance cover in the Personal Division of the Fund, subject to the Insurer s eligibility and underwriting requirements. Proof of age Proof of age will be required, should an insurance claim be made, at the time of submitting a claim. Such proof may include your birth certificate, passport, naturalisation certificate etc. Insurance Policy terms and conditions The PDS and this Insurance Guide contain a summary of the main features of the available insurance cover and benefits that may be provided to members of the Plan. Insurance cover or benefits are subject to the detailed terms and conditions (including definitions) in the insurance policy issued by the insurer, which is available on request from the Fund Administrator. Some, but not all, definitions are explained in this Insurance Guide. In any dispute over benefit payments or interpretation, the strict policy wording of the policy document will prevail. The payment of any insured benefits by the Trustee from the Plan is subject to acceptance of a claim by the insurer, the Trust Deed and superannuation legislation. If, for whatever reason, insurance benefits are denied, reduced or limited by 6

7 the insurer, then the benefit payable from the Plan will be affected. Other Information Enquiries and complaints procedure The Trustee is required to take all reasonable steps to ensure that there are arrangements in place under which: Members or their beneficiaries have the right to enquire into, or complain about, the operation or management of the Plan; and Those enquiries or complaints will be properly considered and dealt with within 90 days. It is important to distinguish between enquiries and complaints. Enquiries are requests for information about the Plan or your benefits. Complaints are expressions of dissatisfaction. Enquiries matter through conciliation, which involves assisting you and the Plan to come to a mutual agreement. If conciliation is unsuccessful, the complaint is referred to the Tribunal for a determination which is binding. You should be aware, however, that a party may appeal a decision of the Tribunal to the Federal Court. If you wish to find out whether the Tribunal can handle your complaint and the type of information you would need to provide, phone the following number for the cost of a local call anywhere in Australia: Postal address Superannuation Complaints Tribunal Locked Bag 3060 Melbourne VIC If you have an enquiry regarding the Plan, you should contact the Fund Administrator (contact details on the back page). Enquiries can be made by , phone or in writing. If you do not receive a satisfactory response within 28 days, you should immediately contact the Trustee (see back page for contact details). Complaints Complaints should generally be made in writing to the Trustee and you should receive a response from the Trustee within 90 days. If you have a complaint relating to this product, contact the Complaints Officer using the Fund Administrator s contact details: Complaints Officer C/- OneVue Super Member Administration Pty Ltd PO Box 67 Australia Square NSW Superannuation Complaints Tribunal If you are not satisfied with the Trustee s handling of your complaint or their decision, or a response is not received within 90 days, you may contact the Superannuation Complaints Tribunal. The Tribunal is an independent body set up by the Federal Government to assist members or beneficiaries to resolve certain types of complaints with fund trustees. The Tribunal may be able to assist you to resolve your complaint, but only if you are not satisfied with the response received from the Trustee s handling of your complaint. If the Tribunal accepts your complaint, it may attempt to resolve the 7

8 Further information and how to contact us Should you require any further information in respect of the Plan, information is available as follows: Plan website Fund Administrator OneVue Super Member Administration Pty Ltd PO Box 67 Australia Square NSW : execsuper@onevue.com.au Trustee Equity Trustees Superannuation Limited (RSE Licence No. L , ABN , AFSL No ) as Trustee for The Executive Superannuation Fund GPO Box 2307 Melbourne VIC 3001 (03) (03)