The Government had indicated that it would make changes to its proposed Stronger Super regulations dealing with aspects of MySuper and governance reforms. In response to industry concerns raised during consultation, Treasury has released a Consultation Outcome indicating that the Government will make changes to the draft regulations in respect of the MySuper notification requirements and various insurance matters.
The Government said the operating standard (proposed SIS Reg 4.07D) for the types of insurance that may be offered will be deferred from 1 July 2013 to 1 July 2014 to provide sufficient time for funds to prepare new insurance arrangements for new members. The Government also said that members who join a fund prior to 1 July 2014 will be able to continue existing cover after 1 July 2014. The Government has also decided that the definition of “insured benefits” will exclude the payment of anti-detriment payments to ensure that anti-detriment death benefits can continue to be paid.
In addition, the Government will clarify that if a fund is self-insuring as at 1 July 2013 in respect of members who become MySuper members, then the insured benefits of those members can continue to be provided through self-insurance until 1 July 2016. Furthermore, it will be clarified that until 1 July 2016, self-insurance can be provided to new members of a fund that currently self-insures.
[LTN 29, 14/2]