Insurance in your super

Transcription

1 Insurance in your super Fact sheet Information in this fact sheet is current as at 1 July 2015 Contents Overview 1 What is Life cover? 5 How your Life cover works 6 When is your insured benefit payable? 16 Additional important information about Life cover 18 What is Income Protection cover? 19 How your Income Protection cover works 20 When is your Income Protection benefit payable? 26 Additional important information about Income Protection cover 29 General information 31 Glossary 33

2 The information in this document forms part of the Member Booklet dated 1 July 2015 for the RBF Tasmanian Accumulation Scheme. You should read the Member Booklet in conjunction with this Fact sheet. This Fact sheet is a summary of significant information and contains references to other important information in Fact sheets each of which forms part of the Member Booklet marked by the {. You should read and consider that information before making a decision in relation to the RBF Tasmanian Accumulation Scheme. To obtain copies of the Member Booklet or the Fact sheets (free of charge) visit our website at or call the RBF Enquiry Line on Issued by the Retirement Benefits Fund Board (ABN ), the trustee of the Retirement Benefits Fund (RBF) (ABN ). The information in this Fact sheet is of a general nature only. It does not take into account your personal objectives, financial situation or needs. Accordingly, before acting on the contents of this Fact sheet or the Member Booklet, you should consider whether it is appropriate to you, having regard to your objectives, financial situation and needs. You should consider speaking with a financial adviser before making any decisions about this product. If you would like personal financial advice, you can call to book an appointment with a Financial Planner at RBF Financial Planning Pty Ltd (ABN , AFS Licence No ). RBF Financial Planning Pty Ltd is a wholly owned subsidiary of the RBF Board and operates as a separate legal entity from RBF. The Retirement Benefits Fund Board is not licensed to provide financial advice to RBF members. The Retirement Benefits Fund Board does not accept responsibility for any financial advice or services provided by RBF Financial Planning Pty Ltd because RBF Financial Planning Pty Ltd is solely responsible for any financial advice or financial services it provides. If you would like general information about your super you can make an appointment with one of RBF s Superannuation Consultants, simply contact the RBF Enquiry Line on At RBF, we strive to provide accurate and up-to-date information to our members. However, things may have changed since the date of publication of this Fact sheet. Information contained in this Fact sheet that is not materially adverse may be updated at any time without prior notification to you. Updated information can be downloaded from our website at A hard copy will also be posted free of charge by calling the RBF Enquiry Line on The privacy of your personal information is important to RBF. We understand the need for confidentiality. RBF will hold your personal information securely and use it only for the purposes described in the RBF Privacy Policy available at Your personal information including sensitive health information may be transferred between RBF, RBF s administrator Mercer Outsourcing (Australia) Pty Ltd (ABN , AFSL ), RBF Financial Planning Pty Ltd (ABN , AFSL ) and the Colonial Mutual Life Assurance Society Limited (ABN , AFSL ) trading as Commlnsure, the Insurer.

3 Overview The information in this Fact sheet is based on the cover available under RBF s insurance product which took effect on 17 December If your illness or injury occurred before that date, you may be eligible for cover under a different insurance product. More information about claims for medical conditions occurring before 17 December 2012 can be found on page 4 of this Fact sheet. Please contact the RBF Enquiry Line on to discuss whether you are eligible for the cover outlined in this Fact sheet. The RBF Tasmanian Accumulation Scheme automatically provides Basic insurance cover to the following categories of eligible members: 1 eligible Tasmanian public sector employees; and 2 eligible former RBF defined benefit scheme members. Basic insurance cover includes: Basic Death and Total and Permanent Disablement cover; and Basic Income Protection cover. Basic insurance cover is provided without you having to supply any health information. However your insurance cover is subject to certain limitations and exclusions which are described in further detail in this Fact sheet. There is more information about Basic Death and Total and Permanent Disablement cover on page 5 and Basic Income Protection cover on page 19. In addition, the RBF Tasmanian Accumulation Scheme offers Voluntary Death and Total and Permanent Disablement cover, Voluntary Death only cover and Voluntary Income Protection cover to all eligible members with an RBF Investment Account. All Voluntary cover is subject to acceptance of underwriting by the Insurer. All insured members may, subject to acceptance of underwriting by the Insurer, increase the amount of their insurance cover or vary the type of insurance cover. Similarly all insured members may reduce or cancel their insurance cover. All insurance cover offered by the RBF Tasmanian Accumulation Scheme is subject to the terms and conditions of Group insurance policies issued by the Colonial Mutual Life Assurance Society (CommInsure) to the RBF Board (the trustee) who is the owner of each insurance policy. We will refer to these policies as the Group Life Insurance Policy and Group Income Protection Insurance Policy, as applicable, throughout this Fact sheet. The Group Life Insurance Policy provides cover for Death, Terminal Illness and Total and Permanent Disablement and the Group Income Protection Policy provides Income Protection insurance cover. Some terms used in this Fact sheet have special meanings. Where a term has a special meaning it will appear in dark blue and the meaning for that term can be found in the Glossary section on page 33. Eligibility for Basic cover Eligible Tasmanian public sector employees You are eligible for Basic insurance cover as an eligible Tasmanian public sector employee, if all of the following apply: 1 you are a member of the RBF Tasmanian Accumulation Scheme; 2 you are an employee of an approved Tasmanian public sector employer, for example a State Government Agency, Statutory Authority or Government Business Enterprise, or an approved seconding employer; 3 your Tasmanian public sector employer (or seconding employer) must pay compulsory Superannuation Guarantee contributions to your RBF Investment Account; 4 you must be less than age 70 in the case of the Life cover offered by RBF; and 5 you must be less than age 65 in the case of the Income Protection cover offered by RBF. Insurance in your super Fact sheet 1

4 Eligible former RBF defined benefit scheme members You are eligible for Basic insurance cover as an eligible former RBF defined benefit scheme member, if all of the following apply: 1 you were a Tasmanian public sector employee and contributor to one of the following RBF defined benefit schemes as at 16 December 2012: a the Contributory Scheme; b the State Fire Commission Superannuation Scheme; c the Tasmanian Ambulance Service Superannuation Scheme; d the Parliamentary Superannuation Fund; or e the Parliamentary Retiring Benefits Fund; 2 if you are not already a member of the RBF Tasmanian Accumulation Scheme, you must immediately join the RBF Tasmanian Accumulation Scheme after ceasing employment with your Tasmanian public sector employer and contributory membership of your RBF defined benefit scheme; 3 you must elect to transfer all of the funded component (1) of your RBF defined benefit to your RBF Investment Account in the RBF Tasmanian Accumulation Scheme on or after 17 December 2012; and 4 at the date of transfer, you must be less than age 70. (1) The funded component is the amount transferred from a defined benefit member s lump sum benefit to their RBF Investment Account after any deduction for: the lump sum cost (purchase price) of a Contributory Scheme Life Pension if the member has elected to convert part of their Contributory Scheme lump sum entitlement to a Contributory Scheme Life Pension; the amount transferred to an RBF Account Based Pension (or RBF Transition to Retirement Account Based Pension) if the RBF Account Based Pension is purchased directly from the RBF defined benefit scheme; and any cash payment made directly from the unrestricted non-preserved component of the defined benefit to the member. If you are an eligible former RBF defined benefit scheme member, you will automatically receive Basic Death and Total and Permanent Disablement cover. If, on cessation of membership of one of the RBF defined benefit schemes, you choose to transfer any part of the funded component of your RBF defined benefit to another super fund, you will not be eligible to receive Basic Death and Total and Permanent Disablement cover however you may apply for Voluntary cover, subject to acceptance of underwriting by the Insurer. Eligibility for Voluntary cover All eligible RBF Investment Account members may apply for Voluntary Death and Total and Permanent Disablement cover, Voluntary Death only cover, and Voluntary Income Protection cover. You must satisfy the following when applying for Voluntary cover: 1 you must be a member of the RBF Tasmanian Accumulation Scheme; 2 you must have an open RBF Investment Account; 3 in the case of Voluntary Death and Total and Permanent Disablement cover and Voluntary Death only cover, you must be less than age 70; and 4 in the case of Voluntary Income Protection cover, you must be less than age 65. Underwriting for Voluntary cover When applying for Voluntary cover, you will be required to complete a Personal Statement. Subject to your personal circumstances and the amount of cover sought, you may be asked to provide additional information to enable the Insurer to complete their underwriting assessment. When assessing your application for Voluntary cover the Insurer may: 1 accept your application on standard terms. In which case the terms and conditions and insurance premiums detailed in the most recent version of this Fact sheet will apply to your cover. 2 accept your application on non-standard terms. In which case the Insurer may impose certain restrictions and limitations on your Voluntary cover. In addition, the Insurer may apply a premium loading in recognition of the increased insurance the Insurer takes by accepting your application for cover. An extra premium (premium loading) will apply in addition to the insurance premiums detailed in the most recent version of this Fact sheet. 3 decline your application. In which case you will not be eligible to receive the insurance cover being sought. Please note the following important information If you have Basic insurance cover and your application to increase your Voluntary insurance cover is accepted on non-standard terms, the non-standard terms will only apply to your Voluntary cover and will not impact your Basic insurance cover. If you have Basic insurance cover and your application to increase your Voluntary cover is declined, you will still have your Basic insurance cover. If you had Basic Insurance cover, and you subsequently voluntarily decided to reduce or cancel your Basic insurance cover, any subsequent application to increase your cover is subject to acceptance by the Insurer. 2 Insurance in your super Fact sheet

5 Types of cover in the RBF Tasmanian Accumulation Scheme This section provides a summary of the different types of cover available. More information about each of these types of cover is available in this Fact sheet, as noted by the page references. Life cover There are three categories of Life cover as follows: Basic Death and Total and Permanent Disablement cover; Voluntary Death and Total and Permanent Disablement cover; and Voluntary Death only cover. Death cover: provides for the payment of an insured lump sum in the event that RBF and the Insurer (where applicable) determine that you are suffering from a Terminal Illness or you pass away whilst you are an insured member. There s more information about Death cover on page 5. Total and Permanent Disablement cover: provides for the payment of an insured lump sum in the event that RBF and the Insurer (where applicable) determine that you are totally and permanently disabled. There is more information about Total and Permanent Disablement cover on page 5. The Life cover offered by RBF is unitised. There is more information about this on page 6. You may, subject to acceptance by the Insurer, convert your unitised Life cover to an equivalent fixed dollar amount. There is more information about this on page 11. Income Protection cover There are two categories of Income Protection cover as follows: Basic Income Protection cover; and Voluntary Income Protection cover. Basic Income Protection cover is automatically provided to members who are eligible Tasmanian public sector employees. There is more information on Basic Income Protection cover on page 19. All eligible RBF Investment Account members may apply for Voluntary Income Protection cover. All Voluntary Income Protection cover is subject to acceptance of underwriting by the Insurer for members applying on or from 17 December There is more information on Voluntary Income Protection cover on page 19. Income Protection cover provides for the payment of a monthly benefit in the event that RBF and the Insurer (where applicable) determine that you are unable to work due to a Total Disability or Partial Disability but you are not totally and permanently disabled. The Basic Income Protection benefit automatically includes a benefit payment period of two years and a waiting period of 90 days. You may subject to acceptance of underwriting by the Insurer apply to: 1 extend the benefit payment period to five years or to age 65; or 2 shorten the waiting period to 30 days or 60 days. There is more information about Income Protection cover including information relating to benefit payment periods and waiting periods on page 19. Insurance in your super Fact sheet 3

6 Some important things you should know about your insurance cover Limited cover If, on the commencement of your Basic Death and Total and Permanent Disablement cover or Basic Income Protection cover, you are not in active employment due to the existence of a sickness or injury, your Basic Death and Total and Permanent Disablement cover or Basic Income Protection cover is restricted to limited cover until you return to active employment with your employer for two consecutive months. If you are an eligible Tasmanian public sector employee and you do not become an insured member within 120 days of commencing your employment with your Tasmanian public sector employer, your Basic Death and Total and Permanent Disablement cover or Basic Income Protection cover is restricted to limited cover for two years. During the limited cover period you will only be covered for claims arising from a sickness which first becomes apparent or an injury that first occurs on or after the date your Basic Death and Total and Permanent Disablement cover or Basic Income Protection cover last started or recommenced. Claims for medical conditions occurring before 17 December 2012 whilst you are on limited cover If you had Death and Total and Permanent Disablement cover or Income Protection cover immediately before 17 December 2012 and you were not in active employment at this date, the increased portion of your Basic Death and Total and Permanent Disablement cover or Basic Income Protection cover on and from 17 December 2012 will be limited cover until you have returned to active employment with your employer for two consecutive months. If you die or make a claim for the payment of a Death, Terminal Illness, Total and Permanent Disablement or Income Protection benefit when you have limited cover for the increased portion of your Basic insurance cover and the primary cause of your claim is related to a pre-existing medical condition that occurred or became first apparent before 17 December 2012, the amount of your Basic Death and Total and Permanent Disablement or Basic Income Protection cover may be determined in accordance with former RBF Tasmanian Accumulation Scheme rules and not as described in this Fact sheet. Once you returned to active employment with your employer for two consecutive months after 17 December 2012, your cover will be full cover and the amount of your Basic Death and Total and Permanent Disablement cover or Basic Income Protection cover will be the amount detailed in this Fact sheet. Please contact the RBF Enquiry Line on to discuss whether your claim is eligible for the cover described in this Fact sheet. Varying your cover You may apply to vary the amount and type of Death and Total and Permanent Disablement cover, Death only cover and Income Protection cover that you hold. All increases to the amount of your insurance cover or variations to the type of insurance cover (other than those specified for Basic cover) are subject to acceptance of underwriting by the Insurer. Depending on the type of request, you may be required to: complete a Personal Statement as to your health; and provide additional information if requested by RBF and the Insurer. You can reduce or cancel your insurance cover at any time by completing and returning the Insurance Variation form. For example, you may choose to have Death only cover and Income Protection cover. There s more information about changing your Life cover on page 10 and changing your Income Protection cover on page 21. How much cover do I need? As a general principle, you will need to determine the amount of cover that will be required to enable you or your dependants to maintain your current standard of living in the event of your Death, Terminal Illness or Total and Permanent Disablement. In addition, you will need to consider how you will obtain income in the event you suffer from an injury or sickness which prevents you from working and receiving income from your employer (where this injury or sickness does not constitute Total and Permanent Disablement). You may wish to consider the following factors when determining the amount of Death and Total and Permanent Disablement cover and Income Protection cover you require (please note this is not an exhaustive list): your age, income and accrued retirement savings; your health; your lost future income and super retirement benefits in the event of your death or total and permanent disablement; your lost income in the event you are temporarily disabled and no longer receiving income from your employer; your assets including investments; your spouse s age and income; the age and financial needs of any dependent children; your current financial commitments such as mortgages and personal loans; your current and expected future living expenses; and medical and funeral expenses. Determining how much Death and Total and Permanent Disablement cover and Income Protection cover is appropriate to your circumstances is an important personal decision. RBF recommends that you consider obtaining specific personal financial advice from a financial adviser. If you would like personal financial advice, you can call to book an appointment with an RBF Financial Planner from RBF Financial Planning Pty Ltd (ABN , AFS Licence No ). 4 Insurance in your super Fact sheet

7 What is Life cover? There are three categories of Life cover. The table below provides a summary of the insured events and eligibility criteria for each category of Life cover. Category of Life cover Basic Death and Total and Permanent Disablement cover Voluntary Death and Total and Permanent Disablement cover Voluntary Death only cover Insured events Death or Terminal Illness Total and Permanent Disablement Death or Terminal Illness Total and Permanent Disablement Death or Terminal Illness Eligibility criteria You must be an: eligible Tasmanian public sector employee and your public sector employer must pay Superannuation Guarantee contributions to your RBF Investment Account; or eligible former RBF defined benefit scheme member. All eligible RBF Investment Account members may apply for Voluntary cover. Eligible RBF Investment Account members include: Spouse RBF Investment Account holders; former RBF defined benefit scheme members; former Tasmanian public sector employees who have retained benefits in their RBF Investment Account; current members who are eligible Tasmanian public sector employees; and current members of any RBF defined benefit scheme. Death and Total and Permanent Disablement cover Basic and Voluntary Death and Total and Permanent Disablement cover provide for the payment of an insured lump sum amount in the event of your: Death; or Terminal Illness; or Total and Permanent Disablement. In the event that you make a claim for the payment of a Terminal Illness benefit, both RBF and the Insurer (where applicable) must be reasonably satisfied, on the basis of medical and other evidence, that you satisfy all conditions for the payment of an insured Terminal Illness benefit. The definition of Terminal Illness is detailed on page 16. In the event that you make a claim for the payment of a Total and Permanent Disablement benefit, both RBF and the Insurer (where applicable) must be reasonably satisfied, on the basis of medical and other evidence, that you satisfy at least one of the four conditions for payment of an insured Total and Permanent Disablement benefit. The definition of Total and Permanent Disablement is detailed on page 16. Voluntary Death only cover Voluntary Death only cover provides for the payment of an insured lump sum amount in the event of your death or Terminal Illness. The eligibility criteria for payment of a Terminal Illness benefit can be found on page 16. There is more information about Voluntary Death only cover on page 10. Please note the following important information If you have Voluntary Death only cover and you do not have any Death and Total and Permanent Disablement cover, and RBF determines that you satisfy the criteria for payment of a Total and Permanent Disablement benefit, you will not be eligible for payment of an insured lump sum amount because you do not have Death and Total and Permanent Disablement cover. In these circumstances your Total and Permanent Disablement benefit will be the balance of your RBF Investment Account. When Life cover starts This section explains when your Life cover starts. Basic Death and Total and Permanent Disablement cover Eligible Tasmanian public sector employees Your Basic Death and Total and Permanent Disablement cover starts from the later of the following dates: the date that you commenced employment with your Tasmanian public sector employer; or the commencement of the first pay period on which RBF receives the first Superannuation Guarantee contribution from your Tasmanian public sector employer; or the date you joined the RBF Tasmanian Accumulation Scheme. Eligible former RBF defined benefit scheme members Your Basic Death and Total and Permanent Disablement cover starts on the date the entire amount of your funded RBF defined benefit is transferred to your RBF Investment Account. Any Voluntary Death and Total and Permanent Disablement cover or Voluntary Death only cover that you have immediately before the transfer date will continue to apply. Insurance in your super Fact sheet 5

8 Please note Basic Death and Total and Permanent Disablement cover will be restricted to limited cover if you are not in active employment on the date your employment ceased with your former RBF Tasmanian public sector employers. You can read the important information about limited cover on page 4. Basic cover where you have claimed or are eligible to claim a Total and Permanent Disablement benefit If, on the commencement of your Basic Death and Total and Permanent Disablement cover, you have been paid a Total and Permanent Disablement benefit or you are eligible to be paid a Total and Permanent Disablement benefit from RBF or any other super fund or life insurance policy, your Basic Death and Total and Permanent Disablement cover will be restricted to limited cover. That is, you will not be covered for Total and Permanent Disablement arising from or relating to your pre-existing medical condition. Information about limited cover can be found on page 4. When Voluntary cover starts The start date for Voluntary Death and Total and Permanent Disablement cover and Voluntary Death only cover is the date the Insurer notifies RBF in writing of their acceptance of your application for Voluntary Death and Total and Permanent Disablement cover and/or as the case requires Voluntary Death only cover. How your Life cover works The Life cover offered by RBF is unitised. This means that the amount of your Life cover will vary according to: the number of units of Basic Death and Total and Permanent Disablement cover you hold; the number of units of Voluntary Death and Total and Permanent Disablement cover you hold; the number of units of Voluntary Death only cover you hold; your age next birthday; and the underlying value of one unit of Death and Total and Permanent Disablement cover for your age next birthday. You may convert your unitised Life cover to an equivalent amount of fixed dollar cover. There is more information about fixed dollar cover on page 11. Maximum cover The maximum amount of Life cover you can have is $5 million for Death cover (which includes Terminal Illness cover) and $3 million for Total and Permanent Disablement cover. This applies to both unitised and fixed dollar cover. This means that you can choose to have a higher amount of insured Death cover than insured Total and Permanent Disablement cover. However the amount of your insured Total and Permanent Disablement cover cannot exceed your Death cover. Basic Death and Total and Permanent Disablement cover If you have Basic Death and Total and Permanent Disablement cover, you automatically receive the following number of units for your age next birthday on and from the cover start date: Age next birthday Up to age 30 Age 31 to 40 Age 41 to 70 Number of units 3 units 4 units 5 units The number of units applicable to each age group represents the automatic acceptance limit for Basic Death and Total and Permanent Disablement cover. The automatic acceptance limit is the maximum amount of cover you can receive without being required to provide additional evidence regarding your health. The number of units you hold will automatically increase by one unit on each of your 30th and 40th birthdays. This additional unit of cover is provided to you without you having to provide any additional medical evidence. Please note the following important information You are not entitled to the automatic increase in Basic Death and Total and Permanent Disablement cover if you reduce your Basic Death and Total and Permanent Disablement cover or convert your cover to fixed dollar cover. 6 Insurance in your super Fact sheet

9 Amount of cover Calculating your Basic Death and Total and Permanent Disablement cover You can simply determine the amount of your Basic Death and Total and Permanent Disablement cover using Table 1 below as follows: 1 locate your age next birthday in first column of Table 1; and 2 using the row appropriate to your age next birthday look up the amount in the fourth column of Table 1 below. Table 1 Units of Death and Total and Permanent Disablement cover (2) Your age next birthday Value of one unit Number of units Amount of cover 17 $121,000 3 $363, $121,000 3 $363, $121,000 3 $363, $121,000 3 $363, $121,000 3 $363, $121,000 3 $363, $121,000 3 $363, $121,000 3 $363, $121,000 3 $363, $121,000 3 $363, $121,000 3 $363, $121,000 3 $363, $121,000 3 $363, $115,600 3 $346, $110,100 4 $440, $105,000 4 $420, $100,400 4 $401, $91,000 4 $364, $84,300 4 $337, $77,500 4 $310, $71,200 4 $284, $64,400 4 $257, $57,200 4 $228, $50,600 4 $202, $45,300 5 $226, $40,600 5 $203, $36,400 5 $182, $32,800 5 $164, $29,600 5 $148, $26,900 5 $134, $24,000 5 $120, $21,700 5 $108, $19,200 5 $96, $17,100 5 $85, $15,100 5 $75,500 (2) If you also have units of Death only cover, the value of one unit of cover is the same as one unit of Death and Total and Permanent Disablement cover, however the cost of the unit of cover is reduced. There is more information about Voluntary Death only cover on page 10. Insurance in your super Fact sheet 7

10 Table 1 Units of Death and Total and Permanent Disablement cover (2) continued Your age next birthday Value of one unit Number of units Amount of your cover 52 $13,500 5 $67, $12,100 5 $60, $10,800 5 $54, $9,700 5 $48, $8,800 5 $44, $8,100 5 $40, $7,400 5 $37, $6,800 5 $34, $6,100 5 $30, $5,600 5 $28, $5,100 5 $25, $4,700 5 $23, $4,200 5 $21, $3,800 5 $19, $3,400 5 $17, $3,100 5 $15, $2,700 5 $13, $2,500 5 $12, $2,200 5 $11,000 (2) If you also have units of Death only cover, the value of one unit of cover is the same as one unit of Death and Total and Permanent Disablement cover, however the cost of the unit of cover is reduced. There is more information about Voluntary Death only cover on page 10. Voluntary Death and Total and Permanent Disablement cover All eligible RBF Investment Account holders may apply for Voluntary Death and Total and Permanent Disablement cover. Subject to acceptance by the Insurer, you can tailor the amount of your Death and Total and Permanent Disablement cover to suit your personal circumstances by: increasing the number of units of Voluntary Death and Total and Permanent Disablement cover you hold; and increasing the number of units of Voluntary Death only cover you hold; or alternatively, you may convert your units of cover to fixed dollar cover. For more information about fixed dollar cover see page 11. Calculating your Voluntary Death and Total and Permanent Disablement cover If you have purchased units of Voluntary Death and Total and Permanent Disablement cover, you can calculate the amount of your cover using Table 1 as follows: locate your age at next birthday in the first column of Table 1; using the row appropriate to your age next birthday, look up the value of one unit of Death and Total and Permanent Disablement cover in the second column of Table 1; and multiply the value of one unit of Death and Total and Permanent Disablement cover by the number of units of Voluntary cover you currently hold or, as the case requires, by the number of units of cover you are applying for. 8 Insurance in your super Fact sheet

11 Let s take a look at some examples of how cover is calculated Example 1 Basic Death and Total and Permanent Disablement cover Sally is aged 36 and is an eligible Tasmanian public sector employee who recently commenced employment with her Tasmanian public sector employer. Her employer contributes Superannuation Guarantee contributions to Sally s RBF Investment Account. On joining the RBF Tasmanian Accumulation Scheme, Sally s Basic Death and Total and Permanent Disablement cover will be $284,800. This calculation is shown in the table below: Type of insurance cover Basic Death and Total and Permanent Disablement cover Units of cover Value of one unit at your age next birthday $71,200 (see the second column of Table 1 for age next birthday of 37) Amount of cover 4 (see the third column of Table 1 for age next birthday of 37) $284,800 (4 x $71,200, see the fourth column of Table 1 for age next birthday of 37) There is further information relating to the cost of Basic Death and Total and Permanent Disablement cover on page 12. Example 2 Voluntary Death and Total and Permanent Disablement cover Jessie is 39 years old and has a Spouse RBF Investment Account. Jessie successfully applies for three units of Voluntary Death and Total and Permanent Disablement cover. The amount of Jessie s Voluntary Death and Total and Permanent Disablement cover is $151,800 calculated as follows: Type of insurance cover Voluntary Death and Total and Permanent Disablement cover Units of cover Value of one unit at your age next birthday 3 $50,600 (see the second column of Table 1 for age next birthday of 40) Amount of cover $151,800 (3 x $50,600) There is further information relating to the cost of Voluntary Death and Total and Permanent Disablement on page 12. Example 3 Basic and Voluntary Death and Total and Permanent Disablement cover Anna is 38 and is an eligible Tasmanian public sector employee with Basic Death and Total and Permanent Disablement cover. Anna currently has four units of Basic Death and Total and Permanent Disablement cover with an insured value of $228,800. If Anna successfully applies for two units of Voluntary Death and Total and Permanent Disablement cover her total Death and Total and Permanent Disablement cover will increase to $343,200 as follows: Type of insurance cover Basic Death and Total and Permanent Disablement cover PLUS Voluntary Death and Total and Permanent Disablement cover Units of cover 4 (see the third column of Table 1 for age next birthday of 39) Value of one unit at your age next birthday $57,200 (see the second column of Table 1 for age next birthday of 39) 2 $57,200 (see the second column of Table 1 for age next birthday of 39) Amount of cover $228,800 (4 x $57,200, see the fourth column of Table 1 for age next birthday of 39) $114,400 (2 x $57,200) EQUALS total cover 6 $57,200 $343,200 (6 x $57,200) Insurance in your super Fact sheet 9

12 On Anna s 40th birthday, the number of units of Basic cover she holds will automatically increase to five units provided that she has not reduced her number of Basic units of cover. Assuming Anna has continued to maintain her Voluntary cover, Anna s Death and Total and Permanent Disablement cover will be $317,100 as follows: Type of insurance cover Basic Death and Total and Permanent Disablement cover PLUS Voluntary Death and Total and Permanent Disablement cover Units of cover 5 (see the third column of Table 1 for age next birthday of 41) Value of one unit at your age next birthday $45,300 (see the second column of Table 1 for age next birthday of 41) 2 $45,300 (see the second column of Table 1 for age next birthday of 41) Amount of cover $226,500 (5 x $45,300, see the fourth column of Table 1 for age next birthday of 41) $90,600 (2 x $45,300) EQUALS total cover 7 $45,300 $317,100 (7 x $45,300) Voluntary Death only cover You may, subject to acceptance by the Insurer, apply for Voluntary Death only cover. Voluntary Death only cover is unitised. If you already have Basic Death and Total and Permanent Disablement cover and/or Voluntary Death and Total and Permanent Disablement cover you can increase the amount of your Death cover by purchasing additional units of Death only cover. The value of one unit of Death only cover is the same as one unit of Death and Total and Permanent Disablement cover, however the cost of each unit of Death only cover is lower. There is more information about the cost of Voluntary Death only cover on page 12. If you already have fixed dollar Death and Total and Permanent Disablement cover you may apply to increase your fixed Death only cover amount. You may choose to convert all or part of your Basic and Voluntary Death and Total and Permanent Disablement cover to Voluntary Death only cover. Please be aware that if you convert all of your cover to Voluntary Death only cover you will no longer be insured for Total and Permanent Disablement. If you decide later on that you would like to reapply for Total and Permanent Disablement cover, you will have to provide acceptable health evidence to the Insurer. Interim Accident cover You are provided with Interim Accident cover while the Insurer assesses your application for Voluntary Death and Total and Permanent Disablement cover or Voluntary Death only cover. This means, that if you die or become totally and permanently disabled as a result of an accident whilst your request for Voluntary cover is being assessed, the benefit you receive will include Interim Accident cover. The amount of Interim Accident cover is limited to the lesser of the following amounts: $1 million dollars less the amount of any existing insured Basic cover and Voluntary cover; and the amount of Voluntary Death and Total and Permanent Disablement cover or Voluntary Death only cover requested. An accident means a bodily injury caused solely and directly by accidental, external and visible means, independent of any other cause. Your Interim Accident cover will end on the earlier of the following dates: the date that the Insurer accepts your application for Voluntary cover on standard or non-standard terms with or without any premium loadings, exclusions or special conditions; the date the Insurer declines your request for Voluntary cover; the date that you cancel or withdraw your request for Voluntary cover; the date that the Insurer cancels the Interim Accident cover; or 120 days after the date that the Insurer receives your application for Voluntary cover. 10 Insurance in your super Fact sheet

13 Life Events cover Have your circumstances changed? If your personal circumstances have changed, it may be time to review your insurance cover. Upon the occurrence of one of the following Life Events, you can increase your insurance cover without having to provide any additional health evidence: marriage; divorce; the birth or adoption of a child; your child starts primary or secondary school for the first time; you take out a new mortgage to purchase your home (please note this condition is not satisfied if you are refinancing an existing mortgage on your home, or are purchasing an investment property); or your spouse dies. You must increase your Death and Total and Permanent Disablement cover by the same amount. Any restrictions applying to your current insurance cover will also apply to any increased cover. Your insurance premium will also increase in line with the cost of your increased cover. Please note the following conditions apply to Life Events cover: 1 you can only increase your cover as a consequence of Life Events cover once; 2 your application for Life Events cover must be made within 60 days of its occurrence and the event must be earlier than: a the date of your Death, diagnosis of a Terminal Illness or as the case requires date of disablement in the case of Total and Permanent Disablement cover; or b the date your insurance cover ended; 3 the amount of the increase in your cover is limited to the lesser of: a the amount of your existing Death and Total and Permanent Disablement cover; or b $200,000. If your Life cover is unitised cover, the amount of insured cover provided is rounded down to the nearest number of whole units of cover that is less than $200,000; 4 if you are not in active employment at the time of the increase in cover, your cover in relation to the increased cover will be limited cover; and 5 any limitation, restriction or premium loading that applies to your existing Death and Total and Permanent Disablement cover will also apply to the increased insurance cover. For more information about limited cover, please see page 4. You can apply for Life Events cover by completing and returning the Life Events cover form which can be downloaded from the RBF website at or you can call the RBF Enquiry Line on to request a copy of the form. Conversion to fixed dollar cover If you have unitised Death and Total and Permanent Disablement cover or Death only cover, you may, subject to acceptance by the Insurer, convert this cover to a fixed dollar amount. You must convert all of your unitised cover to fixed dollar cover. You may convert your Death and Total and Permanent Disablement cover and Death only cover to a fixed dollar amount without providing health evidence provided that the amount of fixed dollar cover is equivalent to the value of your existing unitised cover. Please note that if the amount of your Basic Death and Total and Permanent Disablement plus any Voluntary cover is not in multiples of $1,000, the value of the fixed dollar to which your unitised cover is converted to is rounded up to the next multiple of $1,000. You can request fixed dollar cover when you make your application for Voluntary Death and Total and Permanent Disablement cover. Please note your insurance cover is subject to acceptance by the Insurer. If you have selected fixed dollar cover, you may at a later date convert your cover to unitised cover. Please note that when you convert your cover from fixed dollar cover to unitised cover, if the whole amount of fixed dollar cover is less than a whole unit of cover, the cover will be rounded up to the next whole number of units of cover. How fixed dollar cover works Once you have chosen fixed dollar cover, the amount of Death and Total and Permanent Disablement cover (or if applicable Death only cover) will not change unless you apply for an increase. However, unlike unitised cover, the premium you pay will increase as you age. If you have Death and Total and Permanent Disablement, for the purpose of the Total and Permanent Disablement cover (but not the Death only cover) the amount of the fixed dollar cover will reduce in accordance with the table below, once you have turned 60. Age next birthday % of fixed dollar insured benefit payable in the event you make a successful Total and Permanent Disablement claim % 61 90% 62 80% 63 70% 64 60% 65 to 70 50% Insurance in your super Fact sheet 11

14 Transferring your cover from other funds to RBF You may be able to transfer the Life cover you had in your previous super fund to RBF without the need to provide the Insurer with all the health and other evidence you would usually provide when applying for Voluntary Death and Total and Permanent Disablement cover or Voluntary Death only cover. You are only able to transfer Life cover associated with another super fund. You cannot transfer personal or retail life insurance cover. All transferred cover is subject to acceptance by the Insurer and there are a number of conditions which must be met including: you must be in active employment; you must roll over your super benefit from your previous fund to your RBF Investment Account and you must have agreed to waive any right or entitlement to continue your cover under the previous policy; you must not have received or you must not be eligible for the payment of a Total and Permanent Disablement benefit from the previous super fund; the Insurer must be satisfied that you are not suffering from a Terminal Illness; any exclusions, special conditions or premium loadings that applied to your previous cover will also apply to your transferred cover; the maximum amount of Death and Total and Permanent Disablement cover transferred when added to any existing Life cover cannot exceed $2 million; and the maximum amount of Total and Permanent Disablement cover transferred cannot exceed the Death cover transferred. To rollover your benefits to your RBF Investment Account, simply log in to the member secure website. Navigate to the Contributions > Rollovers/ Transfer-in page and complete the Online rollover request form. You will need a few details for the fund(s) you wish to consolidate and you can find these details on your previous fund s statement. Alternatively you can complete the RBF Tasmanian Accumulation Scheme Rollover form available on our website or by contacting the RBF Enquiry Line on You can make an application to transfer your Life cover from your previous super fund by completing the Insurance Transfer form which can be obtained by visiting the RBF website at or you can request a copy of the form by calling the RBF Enquiry Line on Cost of Death and Total and Permanent Disablement cover Risk categories There are three categories for Death and Total and Permanent Disablement cover: ; Medium ; and Low. On commencement of insurance cover, all insured members will receive cover in the category. Insured members can then, if eligible, apply to the Insurer to change their category to Low or Medium. If the Insurer accepts the insured member s application, the new category will apply from the date the Insurer accepts your application for the lower category. The table below defines each category. Risk category Medium Low Description You will automatically be allocated to the category upon commencement of Death and Total and Permanent Disablement cover. You may fall within the Medium category if you satisfy the following criteria: the duties of your occupation are limited to managerial, administrative, clerical, secretarial or similar white collar nature tasks which do not involve manual work or teaching and are undertaken entirely within an office environment (excluding travel time from one office environment to another). You may fall within the Low category if you satisfy all of the following criteria: the duties of your occupation are limited to managerial, administrative, clerical, secretarial or similar white collar nature tasks which do not involve manual work or teaching and are undertaken entirely within an office environment (excluding travel time from one office environment to another); and you earn in excess of $100,000 per annum; and either: you hold a Tertiary qualification or you are a member of a professional institute or registered government body; or you are in a management role. You are in a management role if: you are part of the management of your employer; your salary from your employer is greater than $100,000 per annum; and you work in an office building in a sedentary capacity. A Tertiary qualification includes a university Degree, Graduate Certificate, Advanced Diploma and/or a Diploma. Once you are accepted for a Low or Medium category, you are not required to notify RBF if your category changes unless you later apply to increase your insurance cover. You can make an application to change your category by completing the Insurance Variation form which can be obtained by visiting the RBF website at or you can request a copy of the form by calling the RBF Enquiry Line on Insurance in your super Fact sheet

15 What is the cost of a unit of cover? If the category applies to your cover, the cost of one unit of Death and Total and Permanent Disablement cover is $1 per week. The cost per unit for Death only cover is $0.63 per unit per week. There s more information about Death only cover on page 10. All insurance premiums are deducted from your RBF Investment Account on a monthly basis. If your application for a lower category is accepted by the Insurer, your premiums will be reduced in accordance with the table below. Risk category Premium as a percentage of category Cost of one unit of Death and Total and Permanent Disablement cover per week Cost of one unit of Death only cover per week 100% $1.00 $0.63 Medium 80% $0.80 $0.50 Low 70% $0.70 $0.44 Let s take a look at some examples of how premium costs are calculated Example 4 Basic Death and Total and Permanent Disablement cover Sally is 36 and she has four units of Basic Death and Total and Permanent Disablement cover with an insured value of $284,800 (please refer to Example 1 on page 9). For each category, the cost (premiums) of Sally s Basic Death and Total and Permanent Disablement cover is calculated as follows: Death and Total and Permanent Disablement cover Risk category Units Cost of one unit per week Units Death only cover Cost of one unit per week 4 $ $0.63 $4.00 (4 x $1.00) If accepted 4 $ $0.50 $3.20 by Insurer as Medium (4 x $0.80) If accepted by the Insurer as Low 4 $ $0.44 $2.80 (4 x $0.70) Death and Total and Permanent Disablement premium Weekly Annual $ $ $ Example 5 Voluntary Death and Total and Permanent Disablement cover Jessie is 39 and has three units of Voluntary Death and Total and Permanent Disablement cover with an insured value of $151,800 (please refer to Example 2 on page 9). For each category, the cost of Jessie s Voluntary Death and Total and Permanent Disablement cover is calculated as follows: Death and Total and Permanent Disablement cover Risk category Units Cost of one unit per week Units Death only cover Cost of one unit per week 3 $ $0.63 $3.00 (3 x $1.00) If accepted 3 $ $0.50 $2.40 by Insurer as Medium (3 x $0.80) If accepted by the Insurer as Low 3 $ $0.44 $2.10 (3 x $0.70) Death and Total and Permanent Disablement premium Weekly Annual $ $ $ Insurance in your super Fact sheet 13

16 Example 6 Basic and Voluntary Death and Total and Permanent Disablement cover Anna is 38 and has four units of Basic Death and Total and Permanent Disablement cover and two units of Voluntary Death and Total and Permanent Disablement cover with an insured value of $343,200 (please refer to Example 3 on page 9). For each category, the cost (premium) of Anna s Basic and Voluntary Death and Total and Permanent Disablement cover is calculated as follows: Death and Total and Permanent Disablement cover Risk category Units Cost of one unit per week Units Death only cover Cost of one unit per week 6 $ $0.63 $6.00 (6 x $1.00) If accepted 6 $ $0.50 $4.80 by Insurer as Medium (6 x $0.80) If accepted by the Insurer as Low 6 $ $0.44 $4.20 (6 x $0.70) Death and Total and Permanent Disablement premium Weekly Annual If Anna had two units of Voluntary Death only cover, the cost of Anna s Basic Death and Total and Permanent Disablement cover and Voluntary Death only cover is calculated as follows for each category: Death and Total and Permanent Disablement cover Risk category Units Cost of one unit per week Units Death only cover Cost of one unit per week 4 $ $0.63 $5.26 [(4 x $1.00) + (2 x $0.63)] If accepted by Insurer as Medium If accepted by the Insurer as Low 4 $ $0.50 $4.20 [(4 x $0.80) + (2 x $0.50)] 4 $ $0.44 $3.68 [(4 x $0.70) + (2 x $0.44)] $ $ $ Death and Total and Permanent Disablement premium Weekly Annual $ $ $ In this case, Anna s insured Death cover will be $343,000 (six units of cover x $57,200) and her insured Total and Permanent Disablement cover will be $228,800 (four units of cover x $57,200). 14 Insurance in your super Fact sheet

17 What is the cost of fixed dollar cover? Table 2 shows the annual premium rates for each $1,000 of fixed dollar cover using the category. If the Medium category applies to your cover, the annual cost of your fixed cover is 80% of the category cost. If the Low category applies to your cover, the annual cost of fixed cover is 70% of the category cost. Table 2 Premium rates for every $1,000 of fixed Life cover Annual premium per $1,000 cover Annual premium per $1,000 cover Your age next Death and Total Death only Your age next Death and Total Death only birthday and Permanent Disablement birthday and Permanent Disablement 17 $0.43 $ $1.59 $ $0.43 $ $1.76 $ $0.43 $ $1.94 $ $0.43 $ $2.17 $ $0.43 $ $2.40 $ $0.43 $ $2.72 $ $0.43 $ $3.05 $ $0.43 $ $3.46 $ $0.43 $ $3.87 $ $0.43 $ $4.31 $ $0.43 $ $4.83 $ $0.43 $ $5.38 $ $0.43 $ $5.93 $ $0.45 $ $6.44 $ $0.47 $ $7.05 $ $0.50 $ $7.67 $ $0.52 $ $8.55 $ $0.57 $ $9.32 $ $0.62 $ $10.23 $ $0.67 $ $11.10 $ $0.73 $ $12.42 $ $0.81 $ $13.73 $ $0.91 $ $15.35 $ $1.03 $ $16.83 $ $1.15 $ $19.33 $ $1.29 $ $20.87 $ $1.43 $ $23.72 $14.94 Example 7 Premium costs of fixed Death and Total and Permanent Disablement cover Using Example 3 on page 9, assume Anna, who is aged 38, elects to covert six units of Death and Total and Permanent Disablement cover with an insured value of $343,200 to fixed Death and Total and Permanent Disablement cover of $344,000. The annual premium would be $ assuming the category applies. This amount is calculated as follows: Annual premium EQUALS the amount of Death and Total and Permanent Disablement cover divided by $1,000 multiplied by the age next birthday premium rate for Death and Total and Permanent Disablement cover multiplied by the premium as a percentage of the relevant category Annual premium = $344,000 $1,000 x $0.91 x 100% Annual premium = $ If the Insurer accepts that the Medium category applies, Anna s annual premium would be $ ($ x 80%). If the Insurer accepts that the Low category applies, Anna s annual premium would be $ ($ x 70%). Insurance in your super Fact sheet 15

18 When is your insured benefit payable? Death benefit If you die whilst you have Death cover and you have not made an election for your Death benefit to be paid to your estate, your Death benefit will be paid to: a your surviving spouse; or b if there is no surviving spouse, the person who is your registered carer under Part 2 of the Relationships Act 2003 (TAS); or c if there is no person referred to in a or b above, to your estate. Your surviving spouse is a person who RBF is satisfied that at the time of your death: a was your spouse living with you on a genuine domestic basis and was receiving significant financial support from you; or b if there is no person referred to in paragraph a, was your spouse and was living with you on a genuine domestic basis; or c if there is no person referred to in the above paragraphs a or b, was your spouse and was not living with you on a genuine domestic basis but was receiving significant financial support from you. Your spouse also includes a person of the same or the opposite sex with whom you have a significant relationship as a couple and you are not married to one another or related by family. Terminal Illness benefit If you have Death cover you may qualify for payment of an insured Terminal Illness benefit if: two registered medical practitioners have certified that you suffer from an illness, or injury that is likely to result in your death within a period (the certification period) that ends not more than 12 months after the date of the certification; at least one of the registered medical practitioners is a specialist practising in an area related to the illness or injury from which you suffer; for each of the certificates, the certification period has not ended; and RBF and the Insurer (where applicable) are satisfied from the medical or other evidence, and despite reasonable medical treatment, the Terminal Illness is likely to lead to your death within 12 months of the date of the certification. Your Terminal Illness must be diagnosed and certification must occur while you are insured for Terminal Illness. Total and Permanent Disablement benefit If you have Total and Permanent Disablement cover you may qualify for the payment of an insured Total and Permanent Disablement benefit if you satisfy one of the following criteria: 1 you suffer, as a result of illness or injury: i the total and permanent loss of the use of two limbs; ii blindness in both eyes; or iii the total and permanent loss of the use of one limb and blindness in one eye; OR where: a limb means in respect of paragraph i above the whole hand below the wrist or whole foot below the ankle; and b blindness means, in respect of paragraph ii above 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. 2 you are, 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: i dressing the ability to put on and take off clothing; ii toileting the ability to use the toilet, including getting on and off; OR iii mobility the ability to get in and out of bed and on and off a chair; iv continence the ability to control bowel and bladder function; v feeding the ability to get food from a plate into the mouth; and you are permanently and irreversibly unable to do so for life. 3 all of the following paragraphs i, ii, iii and iv apply to you: i you were on the date of disablement, aged 65 years or less; ii you are 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 medical conditions definitions set out in the Glossary of this Fact sheet); iii RBF and the Insurer (where applicable) consider, on the basis of satisfactory medical and other evidence, that you are unlikely ever to be able to engage in any occupation whether or not for reward; and iv you are likely to be so disabled for life; 16 Insurance in your super Fact sheet

19 Where occupation means an occupation that you can perform, on a full-time basis if employed on a full-time basis prior to the date of disablement, or part-time basis, if employed on a part-time basis prior to the date of disablement, based on the skills and knowledge that you have acquired through previous education, training or experience. OR 4 all of the following paragraphs i, ii, iii and iv apply to you: i you were employed or engaged by an employer at any time in the four month period ending on the date of disablement; ii you were, on the date of disablement, aged 65 years or less; iii as a result of illness or injury, you have been absent from all work for three consecutive months from the date of disablement; and iv RBF and the Insurer (where applicable) consider, on the basis of satisfactory medical and other evidence, that you are unlikely ever to be able to engage in any occupation, whether or not for reward; Where occupations means an occupation that you can perform, on a full-time basis if employed on a full-time basis prior to the date of disablement, or part-time basis, if employed on a part-time basis prior to the date of disablement, based on the skills and knowledge that you have acquired through previous education, training or experience. The date of disablement means the later of: 1 the date on which a medical practitioner examines you and certifies in writing that you are suffering from the illness or injury that is the principal cause of your disablement; and 2 the date you cease all work. However: i if the definition of Total and Permanent Disablement for which a claim is made is that set out under paragraph 1 of the definition, date of disablement means the date on which a medical practitioner examines you and certifies in writing that you suffer from one of the conditions set out under that paragraph 1. ii if you participate in a rehabilitation program and are incapable of returning to work within 12 months from the date that you commenced your absence from work, the date of disablement is the date that would have applied if you had not participated in the rehabilitation program. The date of disablement must occur while you have insurance cover for Total and Permanent Disablement. Please note the following important information If, when making a claim for payment of insured Total and Permanent Disablement benefit, the date of disablement is more than four months from the date you were last employed or engaged by an employer, paragraph 4 of the definition of Total and Permanent Disablement does not apply. Your Death, Terminal Illness and Total and Permanent Disablement benefits If you die, suffer from a Terminal Illness or you suffer from a Total and Permanent Disablement and you have Life cover for the specified event, any lump sum insurance proceeds received from the Insurer by RBF on your behalf will be credited to your RBF Investment Account. Your final RBF benefit will be the balance of your RBF Investment Account which will include any lump sum insurance proceeds RBF has received in respect of your Life cover. If you have no Life cover or you have no insurance cover for the specified event, you will not be entitled to the payment of any insured benefits. However, if you satisfy the eligibility criteria for the payment of benefits on the grounds of Terminal Illness or Total and Permanent Disablement, you will be entitled to a benefit equal to the balance of your RBF Investment Account. Benefit options You or surviving spouse may: use all or part of the lump sum to purchase an RBF Account Based Pension; convert all or part of the lump sum to an RBF Life Pension (subject to eligibility criteria); cash all or part of the lump sum; or do any combination of the above. If your Death benefit is paid to your registered carer or estate, it must be paid as a lump sum and cannot be converted into an income stream. More information about RBF s pension products can be found in our Fact sheet: Pensions. Go to or call the RBF Enquiry Line on to obtain copies of these Fact sheets. Decreasing your cover You can choose to decrease your level of Death and Total and Permanent Disablement cover whether it s unitised cover or a fixed dollar amount at any time by completing and returning an Insurance Variation form which can be downloaded from the RBF website at or you can request a copy of the form by calling the RBF Enquiry Line on You can choose to cancel your Total and Permanent Disablement cover and maintain Death only cover. Alternatively, you can cancel your cover entirely by notifying RBF in writing or by completing and returning an Insurance Variation form which can be downloaded from the RBF website at or you can request a copy of the form by calling the RBF Enquiry Line on Insurance in your super Fact sheet 17

20 Additional important information about Life cover What happens when you cease employment? If you cease employment with your Tasmanian public sector employer, your Death and Total and Permanent Disablement cover will automatically continue, provided premiums continue to be paid. When your Death and Total and Permanent Disablement cover stops Your Death and Total and Permanent Disablement cover stops on the earliest of the following: the day you reach age 70; the date that your insured Terminal Illness or Total and Permanent Disablement benefit becomes payable to you; the date you notify RBF that you wish to cancel your cover; the date you join the armed forces (excluding the Australian Armed Forces Reserve); the date you cease to be a member of the RBF Tasmanian Accumulation Scheme and an RBF Investment Account holder; the day you die; or the date the balance of your RBF Investment Account reaches zero for more than 30 days. Exclusions The following exclusions apply to your RBF Life cover: War exclusion A benefit will not be paid if you die and your death is caused directly or indirectly by war. However, this does not exclude the payment of a benefit if you die whilst on war service. The same exclusions apply for Terminal Illness and Total and Permanent Disablement cover and benefits will not be paid if your Terminal Illness or Total and Permanent Disablement are caused directly or indirectly by war. Pandemic illness exclusion You may not be entitled to the payment of Death cover if: on the date your insurance cover commences, recommences or increases, you are suffering from a pandemic illness which is the subject of a notice issued by the Insurer to RBF; and you die from the pandemic illness within 30 days of your insurance cover commencing, recommencing or increasing (in which case, only the increased benefit is not payable). A pandemic illness means an illness which is the subject of a pandemic illness alert, advisory notification, declaration or other similar publication issued by: the Australian Government (including a relevant Australian Government department, authority, minister or officer); or the World Health Organisation. Suicide exclusion If your cover commences with limited cover a suicide exclusion will apply. Under the suicide exclusion you will not be entitled to an insured benefit for Death, Terminal Illness and Total and Permanent Disablement benefit if: within 13 months of your cover starting or recommencing, you die due to suicide; or within 24 months of your cover starting or recommencing, you are diagnosed with Terminal Illness or become Totally and Permanently Disabled as a result of intentional selfinflicted injury or attempted suicide. Worldwide cover You are covered under the Group Life Insurance Policy if you are overseas. There is no time limit on overseas absence under this policy assuming that an end of cover provision (as described on this page) has not occurred and the policy is still in force. Leave without pay You re covered under the Group Life Insurance Policy if you take leave without pay. There is no time limit on absence under this policy assuming that an end of cover provision (as described on this page) has not occurred and the policy is still in force. 18 Insurance in your super Fact sheet

21 What is Income Protection cover? Income Protection cover provides for the payment of a monthly benefit in the event you are unable to work due to the existence of a sickness or injury that causes you to be Totally Disabled or Partially Disabled within the meaning of the Group Income Protection Insurance Policy. There are two categories of RBF Income Protection cover as follows: Basic Income Protection cover; and Voluntary Income Protection cover. Basic Income Protection cover is automatically provided to members who are eligible Tasmanian public sector employees. No other members may apply. There is more information about eligible Tasmanian public sector employees on page 1. There is also more information on when Basic Income Protection cover starts on page 20. All eligible RBF Investment Account holders may apply for Voluntary Income Protection cover subject to acceptance by the Insurer. For further details on eligible RBF Investment Account holders, please see page 1. More information on when Voluntary Income Protection cover starts can be found on page 20. Depending on the options you choose, your Income Protection cover may consist of the following components: 1 an income component equal to: a if you have Basic Income Protection cover, up to 75% of the monthly salary you received from your Tasmanian public sector employer during the 12 month period immediately before your disablement (3) ; plus b if you have Voluntary Income Protection cover, up to 75% of the monthly income you received from any occupation (other than employment with a Tasmanian public sector employer) averaged over the 12 month period immediately before disablement (3) ; and 2 if you have super contribution cover (4) a super contributions component equal to the monthly Superannuation Guarantee contributions that would have been paid had you not been disabled. The Insurer pays this contribution directly to RBF for crediting to your RBF Investment Account. (3) Conditions apply, there is more information about the definition of pre-disability income on page 26. (4) Super contributions cover is automatically included in the Basic Income Protection cover offered by RBF. Your options Benefit payment periods Benefit payment period is a term used to describe the maximum time over which an Income Protection claim will be paid. With Income Protection cover there is a choice of three benefit payment periods as follows: two years; five years; or to age 65. The benefits for all three options cease at the earlier of age 65 or the end of the benefit payment period. Different premium rates apply to each different benefit payment period. Please see page 22 for more information about the premiums that apply. The automatic benefit payment period is two years. You may, subject to acceptance by the Insurer, increase your benefit payment period to five years or to age 65. If you make an application for Income Protection cover with a five year or to age 65 benefit payment period, the date of acceptance of this Income Protection cover is the date the Insurer notifies RBF in writing of their acceptance of your application. If your Income Protection cover has a payment period of five years or until age 65 your monthly benefit (including any super contributions cover if applicable) will be indexed in line with the Consumer Price Index (CPI). The increases will be made at the end of each consecutive 12 month period up to a maximum of 7.5% per annum. Waiting periods The waiting period is the continuous period in days that you have to be disabled before a benefit is payable. The automatic benefit waiting period is 90 days for all members. You may, subject to acceptance by the Insurer, request a shorter waiting period of 30 or 60 days. Different premium rates apply for each waiting period and there s more information about these premiums on page 22. During the waiting period you must satisfy the eligibility criteria for payment of a Total Disability benefit or, as the case requires, a Partial Disability benefit. During the waiting period you can continue to be paid any accrued sick leave, annual leave or long service leave entitlements. There is no requirement for you to take any sick leave without pay. Choice of benefit payment period and waiting period is designed to help ensure that you and your family are supported with adequate income in the event that you stop working temporarily due to illness or injury. Insurance in your super Fact sheet 19

22 Choice of insured percentage The insured percentage of your Basic Income Protection cover and Voluntary Income Protection cover is automatically set to 75% of your pre-disability income. You have the option to reduce this percentage to 50%. Please be aware that the monthly benefit you receive will be significantly lower if you choose this option, however your premiums will be reduced correspondingly. Optional super contributions cover Your Basic Income Protection cover automatically provides you with super contributions cover. Super contributions cover provides for the monthly payment of compulsory Superannuation Guarantee contributions whilst you are in receipt of a monthly benefit. Super contributions cover protects the growth of your accrued RBF Investment Account benefit during periods when you are unable to work and in receipt of a monthly benefit. You may, subject to acceptance by the Insurer, choose not to have super contribution cover included in your Basic Income Protection cover. Although your premium will reduce if you pursue this option, you will need to consider your super contribution strategy whilst you are disabled. There is an increased that due to lack of contributions your final RBF Investment Account retirement benefit will be lower than expected. Super contributions cover is optional for Voluntary Income Protection cover and subject to acceptance by the Insurer. When your Income Protection cover starts Basic Income Protection cover Eligible Tasmanian public sector employees Your cover starts from the later of the following dates: the date you commence employment with your Tasmanian public sector employer; or the commencement of the first pay period on which RBF receives the first Superannuation Guarantee contribution from your Tasmanian public sector employer; or the date you joined the RBF Tasmanian Accumulation Scheme. If you are not in active employment with your Tasmanian public sector employer on the cover start date, your Basic Income Protection cover will be restricted to limited cover. More information about limited cover is on page 4. How your Income Protection cover works Basic Income Protection cover If you are an eligible Tasmanian public sector employee, your Basic Income Protection cover will automatically have a two year benefit payment period and a 90 day waiting period. The automatic acceptance limit is for monthly cover that is the lesser of the following amounts: 75% of average monthly salary paid by your Tasmanian public sector employer plus your average monthly Superannuation Guarantee contribution benefit; or $16,000. The automatic acceptance limit represents the maximum amount of monthly cover the Insurer will provide without you having to provide further information in relation to your health. Please note the following important information If your income from your Tasmanian public sector employer is greater than $227,200 per annum, you may make an application to have the amount of income in excess of the automatic acceptance limit recognised for insurance purposes. This application is subject to acceptance of underwriting by the Insurer. If you do not make an application to have income in excess of the automatic acceptance limit recognised for insurance purposes your Basic Income Protection insurance premiums will be based on insurance cover of $16,000 per month and in the event you make a successful claim for Basic Income Protection benefits and your pre-disability income from your Tasmanian public sector employer is greater than $227,200 per annum, your monthly benefit will be restricted to the automatic acceptance limit of $16,000 per month. You can make this application by completing an Insurance Variation form which is available on the RBF website at or by calling the RBF Enquiry Line on Voluntary Income Protection cover The cover start date for Voluntary Income Protection cover is the date the Insurer notifies RBF in writing of their acceptance of your application for Voluntary Income Protection cover. 20 Insurance in your super Fact sheet

23 Voluntary Income Protection cover When applying for Voluntary Income Protection cover you are required to nominate the amount of income to be insured, the benefit payment period and the waiting period. Voluntary Income Protection cover provides you with the ability to tailor the amount to suit your personal circumstances particularly where: you are employed by two or more employers. For example, you may have Basic Income Protection cover because you are a Tasmanian public sector employee but you may also work on a part-time basis with another private sector employer; or Basic Income Protection cover does not apply. Please note the following important information Voluntary monthly cover is a fixed amount The amount of Voluntary monthly cover you receive is a fixed amount and should be reviewed periodically in order to reflect changes in your income from other employers. It s important to ensure that your Voluntary monthly cover is equal to your employment income (excluding income from your Tasmanian public sector employer). In the event that you make a successful application for payment of your Income Protection benefit, your Voluntary monthly benefit will be calculated based on your pre-disability income from your private sector employer. If your private sector pre-disability income is greater than the amount of your Voluntary monthly cover, your Voluntary monthly benefit will be equal to your Voluntary monthly cover. If your pre-disability income is lower than your Voluntary monthly cover, your monthly benefit will be based on the lower amount of pre-disability income. Voluntary Introductory cover If you have Basic Income Protection cover with a: 90 day waiting period; and a two year benefit payment period; and you earn income from another employer as well as your Tasmanian public sector employer because you are employed by both employers; you may; within 90 days of your Basic Income Protection cover starting, request that your income from your other employer be recognised for insurance purposes without having to supply any additional evidence in relation to your health. You can apply for Voluntary Introductory cover by completing an Introductory cover application form which is available on the RBF website at or by calling the RBF Enquiry Line on Conditions The following conditions apply to Voluntary Introductory cover: 1 you may only make an application for Voluntary Introductory cover once; 2 the Insurer must accept your application of Voluntary Introductory cover and the date of acceptance of your cover will be the date the Insurer notifies RBF in writing of its acceptance of underwriting; 3 the combined value of your Basic Income Protection cover and Voluntary Introductory Income Protection cover cannot exceed the automatic acceptance limit of $16,000 per month; 4 if your Basic Income Protection cover is limited, your Voluntary Introductory cover will also be limited until your Basic Income Protection ceases to be limited; and 5 your application must be received within 90 days of your Basic Income Protection cover starting. Maximum cover The maximum monthly benefit is $40,000 per month for Income Protection cover with a two year benefit payment period. The maximum monthly benefit is $25,000 per month for Income Protection cover with a five year or to age 65 benefit payment period. How much does Income Protection cover cost? Risk categories There are three categories for Income Protection cover: ; Medium ; and Low. On commencement of insurance cover, all insured members will receive cover in the category. Insured members can then, if eligible, apply to the Insurer to change their category to Low or Medium. If the Insurer accepts the insured member s application, the new category will apply from the date the Insurer accepts your application for the lower category. Insurance in your super Fact sheet 21

24 The table below defines each category. Risk category Medium Low Description You will automatically be allocated to the category upon commencement of Income Protection cover. You may fall within the Medium category if you satisfy the following criteria: the duties of your occupation are limited to managerial, administrative, clerical, secretarial or similar white collar nature tasks which do not involve manual work or teaching and are undertaken entirely within an office environment (excluding travel time from one office environment to another). You may fall within the Low category if you satisfy all of the following criteria: the duties of your occupation are limited to managerial, administrative, clerical, secretarial or similar white collar nature tasks which do not involve manual work or teaching and are undertaken entirely within an office environment (excluding travel time from one office environment to another); and you earn in excess of $100,000 per annum; and either: you hold a Tertiary qualification or you are a member of a professional institute or registered government body; or you are in a management role. You are in a management role if: you are part of the management of your employer; your salary from your employer is greater than $100,000 per annum; and you work in an office building in a sedentary capacity. A Tertiary qualification includes a university Degree, Graduate Certificate, Advanced Diploma and/or a Diploma. Once you are accepted for a Low or Medium category, you are not required to notify RBF if your category changes unless you later apply to increase your Income Protection cover. You can make an application to change your category by completing an Insurance Variation form which can be obtained by visiting the RBF website at or you can request a copy of the form by calling the RBF Enquiry Line on Table 3 below shows the annual premium you pay for insurance cover of $500 per month if you are in the category. Please note that the fourth column of the table (highlighted in violet) shows the annual premium for Income Protection cover with a 90 day waiting period and a two year benefit period. If the Insurer has accepted that the Medium category applies to your cover, multiply your annual premium by 80%. If the Insurer has accepted that the Low category applies to your cover, multiply your annual premium by 70%. Premiums are deducted monthly from your RBF Investment Account. Table 3 Annual Income Protection premium for insurance cover of $500 per month Waiting period 30 days 60 days 90 days 30 days 60 days 90 days 30 days 60 days 90 days Benefit payment period Age next birthday 2 years 2 years 2 years 5 years 5 years 5 years To age 65 To age 65 To age $36.35 $21.75 $8.14 $49.87 $29.88 $11.69 $ $66.20 $ $36.32 $21.83 $8.18 $49.91 $29.95 $11.78 $ $67.65 $ $36.39 $21.81 $8.14 $49.97 $30.03 $11.76 $ $69.00 $ $36.44 $21.88 $8.17 $50.03 $30.00 $11.85 $ $70.45 $ $36.51 $21.87 $8.17 $51.82 $31.05 $12.37 $ $71.90 $ $36.48 $21.95 $8.21 $51.87 $31.12 $12.46 $ $73.25 $ $36.55 $21.93 $8.25 $51.92 $31.09 $12.55 $ $74.69 $ $36.91 $22.11 $8.36 $52.37 $31.36 $12.83 $ $76.75 $ $37.18 $22.28 $8.47 $52.83 $31.63 $13.11 $ $78.80 $ $37.54 $22.47 $8.61 $55.13 $33.10 $13.93 $ $80.85 $ Insurance in your super Fact sheet

25 Table 3 Annual Income Protection premium for insurance cover of $500 per month Waiting period 30 days 60 days 90 days 30 days 60 days 90 days 30 days 60 days 90 days Benefit payment period Age next birthday 2 years 2 years 2 years 5 years 5 years 5 years To age 65 To age 65 To age $37.81 $22.75 $8.72 $55.57 $33.37 $14.22 $ $82.90 $ $38.19 $22.93 $8.83 $56.04 $33.64 $14.51 $ $84.95 $ $38.58 $23.13 $8.83 $56.73 $34.05 $14.60 $ $87.05 $ $39.07 $23.43 $8.90 $57.33 $34.43 $14.60 $ $89.13 $ $39.48 $23.73 $8.90 $59.86 $35.91 $15.13 $ $91.30 $ $39.98 $24.02 $8.90 $60.57 $36.32 $15.13 $ $93.39 $ $40.49 $24.23 $8.98 $61.26 $36.73 $15.23 $ $95.48 $ $42.30 $25.40 $9.32 $64.03 $38.43 $15.79 $ $ $ $44.12 $26.47 $9.73 $66.72 $40.03 $16.44 $ $ $ $45.93 $27.54 $10.06 $71.43 $42.92 $17.43 $ $ $ $47.75 $28.61 $10.43 $74.31 $44.63 $18.08 $ $ $ $49.56 $29.78 $10.77 $77.19 $46.34 $18.64 $ $ $ $52.79 $31.71 $11.74 $82.14 $49.34 $20.25 $ $ $ $56.02 $33.65 $12.67 $87.19 $52.26 $21.78 $ $ $ $59.23 $35.58 $13.57 $94.52 $56.77 $23.95 $ $ $ $62.47 $37.52 $14.54 $99.67 $59.79 $25.57 $ $ $ $65.70 $39.36 $15.43 $ $62.89 $27.19 $ $ $ $70.67 $42.37 $17.22 $ $67.75 $30.34 $ $ $ $75.74 $45.41 $19.05 $ $72.52 $33.49 $ $ $ $80.82 $48.42 $20.84 $ $79.20 $37.51 $ $ $ $85.79 $51.46 $22.63 $ $84.17 $40.76 $ $ $ $90.86 $54.47 $24.46 $ $89.14 $43.91 $ $ $ $98.35 $59.03 $27.41 $ $96.52 $48.88 $ $ $ $ $63.48 $30.28 $ $ $53.85 $ $ $ $ $68.04 $33.23 $ $ $60.14 $ $ $ $ $72.59 $36.15 $ $ $65.20 $ $ $ $ $77.05 $39.10 $ $ $70.28 $ $ $ $ $87.39 $45.19 $ $ $80.40 $ $ $ $ $97.72 $51.21 $ $ $90.52 $ $ $ $ $ $57.31 $ $ $ $ $ $ $ $ $63.40 $ $ $ $ $ $ $ $ $69.50 $ $ $ $ $ $ $ $ $71.27 $ $ $ $ $ $ $ $ $73.12 $ $ $ $ $ $ $ $ $74.94 $ $ $ $ $ $ $ $ $76.71 $ $ $ $ $ $ $ $ $78.56 $ $ $ $ $ $ $ $ $65.90 $ $ $65.90 $ $ $ $ $61.63 $26.56 $ $61.63 $26.56 $ $61.63 $26.56 Insurance in your super Fact sheet 23

26 Let s take a look at some examples of how premium costs are calculated Example 8 Calculating premiums for Basic Income Protection cover Sally is 36 and has Basic Income Protection cover with a 90 day waiting period and a two year benefit payment period. Sally s salary from her Tasmanian public sector employer is $80,000 per annum or $6, per month. Sally s monthly cover benefit is $5,633 per month as follows: Monthly cover EQUALS (monthly income from your public sector employer multiplied by your insured percentage) PLUS (monthly income from your public sector employer multiplied by your Superannuation Guarantee rate) = ($6, x 75%) + ($6, x 9.5%) = $5,633 Sally s monthly cover of $5,633 consists of: an income component of $5,000 per month; and a super contributions component of $633 per month. Cost of cover The annual and monthly cost of Sally s Basic Income Protection cover is calculated using the premium rates in Table 3 as follows: Annual Income Protection premium Monthly Income Protection premium EQUALS monthly cover divided by $500 multiplied by premium rate appropriate to age next birthday multiplied by category = $5,633 $500 x $10.43 (age next birthday is 37 see third column of Table 3) x 100% assuming category = $ If the Insurer has accepted that Sally s category is Medium her annual premium would be $94.00 ($ x 80%). If the Insurer has accepted that Sally s category is Low her annual premium would be $82.25 ($ x 70%). = annual premium divided by 12 = $ = $9.79 If the insurer has accepted that Sally s category is Medium, the monthly premium would be $7.83. If the Insurer has accepted that Sally s category is Low, the monthly premium would be $ Insurance in your super Fact sheet

27 Example 9 Calculating premiums for Basic and Voluntary Income Protection cover Mary is 40 years of age and works as a medical practitioner. She has Basic Income Protection cover and Voluntary Income Protection cover. Mary s public sector income is $200,000 per annum and her income from private practice is $100,000, bringing Mary s total income for purposes of Income Protection cover to $300,000 per annum. The Insurer has accepted Mary s application for Voluntary Income Protection on the basis of the health information Mary provided in her Personal Statement and the evidence she provided in relation to her income from her private sector employment. Mary s Income Protection cover has a 90 day waiting period and a two year benefit payment period. The insured percentage is 75% and super contributions cover applies for both Basic and Voluntary Income Protection cover. Mary s Basic monthly cover and her Voluntary monthly cover is calculated as follows: Basic monthly cover Voluntary monthly cover Total monthly cover Annual Income Protection premium Monthly Basic Income Protection premium EQUALS (monthly income from Mary s Tasmanian public sector employer multiplied by insured percentage) PLUS (monthly income from Mary s employer multiplied by her Superannuation Guarantee rate) = ($16, x 75%) + ($16, x 9.5%) = $14,083 EQUALS (monthly income from Mary s private practice employer multiplied by insured percentage) PLUS (monthly income from Mary s employer multiplied by her Superannuation Guarantee rate) = ($8, x 75%) + ($8, x 9.5%) = $7,042 = Basic insured monthly cover PLUS Voluntary insured monthly cover = $7,042 + $14,083 = $21,125 EQUALS Total monthly cover divided by $500 multiplied by premium rate appropriate to age next birthday multiplied by category = $21,125 $500 x $13.57 (Mary s age next birthday is 41, see third column of Table 3) x 100% assuming category = $ If the Insurer has accepted that Mary s category is Medium, the annual cost of cover would be $ ($ x 80%). If the Insurer has accepted that Mary s category is Low, the annual cost of cover would be $ ($ x 70%). Annual premium divided by 12 = $ = $47.78 If the insurer has accepted that Mary s category is Medium, the monthly premium would be $ If the Insurer has accepted that Mary s category is Low, the monthly premium would be $ Transferring your cover from other funds to RBF You may be able to transfer the Income Protection cover you had in your previous super fund to RBF without the need to provide the Insurer with all the health and other evidence you would usually need when applying for Voluntary Income Protection cover. You can only transfer Income Protection insurance cover associated with another super fund. Please note that you cannot transfer personal cover or retail Income Protection insurance cover. All transferred Income Protection cover is subject to acceptance by the Insurer and there are a number of conditions which must be met. The most important requirements are that you are in active employment and your Income Protection cover with your other super fund is current prior to the transfer. You can make an application to transfer your Income Protection cover in your previous super fund by completing the Insurance Transfer form which is available on the RBF website at or by calling the RBF Enquiry Line on Insurance in your super Fact sheet 25

28 When is your Income Protection benefit payable? You will qualify for payment of a monthly Income Protection benefit (monthly benefit) after the conclusion of the waiting period that applies to you if you are suffering from a Total Disability or Partial Disability. Total Disability You are suffering a Total Disability if RBF and the Insurer (where applicable) are satisfied at the conclusion of the benefit waiting period that you are: unable to perform at least one income-producing duty of your own occupation; under the regular care of, and following the advice of a medical practitioner; and not working in any occupation, whether or not for reward. Income-producing duty refers to a duty of your occupation that generates more than 20% of your income. Partial Disability or Partially Disabled You are suffering a Partial Disability or you are Partially Disabled if RBF and the Insurer (where applicable) are satisfied that you are not Totally Disabled but, because of illness or injury, you: were Totally Disabled for at least 14 days; you were unable to work in your own occupation at full capacity immediately after you became Totally Disabled because of the illness or injury that caused your Total Disability; you are working in your own occupation in a reduced capacity or working in another occupation; you earn an amount that is less than your monthly pre-disability income; and you are under the regular care of, and following the advice of a medical practitioner. Your monthly benefit The monthly benefit is payable in the event that you are unable to work because you are suffering from Total Disability. The amount of your monthly benefit is the lesser of the following amounts: 1 the amount of your monthly cover; b 50% of the next $480,000 of your annualised pre-disability income where the two year benefit payment period applies or 50% of the next $120,000 of your annualised pre-disability income where the benefit payment period is greater than two years; plus c if super contributions cover applies, one twelfth of your pre-disability super income; or 3 the maximum monthly benefit amount which is either: a $40,000 per month in the case of an Income Protection benefit with a two year benefit payment period; or b $25,000 per month in the case of an Income Protection benefit with a five year or to age 65 benefit payment period. Monthly pre-disability income Your monthly pre-disability income is used to calculate your monthly benefit. 1 If you are a current Tasmanian public sector employee with Basic Income Protection cover and: a your length of service is 12 months or more, your pre-disability income will be the monthly salary (5) you received in relation to the year immediately before the relevant date (6) ; b your length of service is less than 12 months, your pre-disability income will be the equivalent of the monthly salary (5) earned, or deemed by RBF to have been earned by you immediately before the relevant date. If, however, your payroll history immediately before the relevant date contains periods during which employer Superannuation Guarantee contributions have not been paid or your monthly salary during the same period is in doubt, then your income will be an amount determined by RBF and agreed to by the Insurer having regard to your circumstances. (5) The determination of your monthly salary will be made by reference to the employer Superannuation Guarantee contributions paid or payable to your RBF Investment Account, divided by the relevant Superannuation Guarantee rate. (6) All references to relevant date in this section are references to the date you first suffered from the sickness or injury that caused your Total Disability and is the start date of your benefit waiting period. Despite the above, income does not include: amounts paid or payable to the person by an employer; or employer super contributions paid or payable to RBF; in respect of accrued recreational leave or accrued long service leave taken as a lump sum payment on termination of employment. 2 one twelfth of the total of the following amounts: a 75% of the first $320,000 of your annualised pre-disability income; 26 Insurance in your super Fact sheet

29 2 If you are a former Tasmanian public sector employee with Basic Income Protection cover and you have not been employed by a Tasmanian public sector employer for a period of two months or more at the relevant date, your pre-disability income will be the total monthly value of income received by you from your Tasmanian public sector employer averaged over the most recent six months immediately before the relevant date. If, however, you had been employed by a Tasmanian public sector employer for less than six months before the relevant date, the six month averaging period is reduced to the number of months you were employed. 3 In relation to any insured Voluntary Income Protection cover, pre-disability income means the total monthly value of income received by you from any occupation but excluding income received from a Tasmanian public sector employer. The total monthly value of your income is averaged over the most recent 12 months immediately before the relevant date (7), except: a if you have not been employed, other than with a Tasmanian public sector employer, for a period of two months or more at the relevant date, the 12 month averaging period is reduced to six months; b if, excluding employment with Tasmanian public sector employer, you have been employed for less than 12 months before the relevant date, the 12 month averaging period is reduced to the number of months for which you have been so employed; c despite b, if, excluding employment with a Tasmanian public sector employer, you have been employed on a casual basis for less than 12 months before the relevant date the 12 month averaging period is reduced to the greater of: six months; or the number of months for which you have been employed. If both insured Basic cover and insured Voluntary cover applies to you, your pre-disability income is the total monthly value of income amounts determined under sub-paragraphs 1, 2 and 3 of the definition of pre-disability income. (7) For all references to relevant date please refer to note (6) on page 26. Please note the following important information If you ve been unemployed for more than two months on the date of occurrence of your Total Disability the 12 month averaging period which is used to calculate your pre-disability income is reduced to six months. Example 10 Calculation of a monthly benefit Sally has Basic Income Protection cover with a 90 day waiting period and a two year benefit payment period. Sally has been continuously employed by her Tasmanian public sector employee for three years and suffers from a sickness that prevents her from working for the mandatory waiting period of 90 days. Upon assessing Sally s claim for payment of Income Protection benefit, both RBF and the Insurer (where applicable) are satisfied that Sally is presently Totally Disabled within the meaning of the Group Income Protection insurance policy. Sally s pre-disability income from her Tasmanian public sector employer over the last 12 months is $84,000 or $7,000 per month. Sally s Monthly benefit is $5,915 per month and is calculated as follows: Monthly benefit Monthly benefit EQUALS (Sally s monthly pre-disability income multiplied by 75%) PLUS [Sally s monthly pre-disability income multiplied by Superannuation Guarantee rate (%)] = ($7,000 x 75%) + [($7,000 x 9.5%)] = $5,915 Sally s monthly benefit of $5,915 per month consist of: an income component of $5,250 per month which is paid directly to Sally; and a Superannuation Guarantee contribution of $665 per month which will be credited to Sally s RBF Investment Account. Your Partial Disability monthly benefit The Partial Disability monthly benefit is payable when you are no longer Totally Disabled but you are still Partially Disabled and unable to work in your occupation in the capacity you were immediately before your Total Disability. Your Partial Disability monthly benefit is your monthly benefit proportionally reduced by any income you have earned from employment during the month. That is, your Partial Disability monthly benefit is equal to your monthly benefit minus your Partial Disability reduction amount. The Partial Disability reduction amount is calculated in accordance with the following formula. Partial Disability reduction amount EQUALS current income divided by pre-disability monthly income multiplied by the monthly benefit Where: Current income is the actual monthly income you earned working for your employer during the month. Pre-disability income is your monthly pre-disability income as defined on page 26. Monthly benefit is your monthly benefit as defined on page 26 and calculated on page 26. Insurance in your super Fact sheet 27

30 Let s take a look at an example of how Partial Disability reduction amounts are calculated Example 11 Calculating Partial Disability reduction amounts Using the scenario set out in Example 10, on page 27. Assume: 1 Sally is Totally Disabled for six months and as a consequence she is paid a monthly benefit of $5,915 per month. 2 Starting from the beginning of the seventh month, Sally commences a graduated return to work with her Tasmanian public sector employer over a period of three months. During this period, her Tasmanian public sector employer will pay Sally a salary of $3,000 per month. The Partial Disability reduction amount of $2,535 is calculated as follows: Partial Disability reduction amount EQUALS (Current income divided by pre-disability income) multiplied by monthly benefit = $3,000 $7,000 x $5,915 = $2,535 Sally s Partial Disability monthly benefit will be: Partial Disability monthly benefit Partial Disability monthly benefit Recurrent disability EQUALS monthly benefit minus Partial Disability reduction amount = $5,915 - $2,535 = $3,380 Sally s Partial Disability monthly benefit of $3,380 per month consists of: an income component of $3,000 per month which is paid directly to Sally; and a Superannuation Guarantee contribution component of $380 per month which will be credited to Sally s RBF Investment Account. If you become Totally or Partially Disabled again from the same or a related cause within six months of last receiving an Income Protection benefit, this will be treated as a continuation of the original claim and the benefit waiting period will not apply. The subsequent periods of disability will be added to the original claim to determine when the two year benefit payment period ends. If after six months of your return to work you are again disabled, you will be required to make a new claim for benefit payment. The benefit waiting period and a new benefit payment period will apply. Reduction of your monthly benefit when in receipt of other disability income Your monthly Total Disability or Partial Disability benefit will be reduced where you receive, or are entitled to receive, any of the following forms of other disability income: 1 any income (other than your RBF Tasmanian Accumulation Scheme Income Protection benefit) or commutation of income, paid or payable in respect of you as a result of your illness or injury including: i sick leave payments; ii any amounts payable under legislation such as workers compensation or motor accident compensation; and iii any benefits payable under other Income Protection insurance policies; 2 any income earned by you from personal exertion while disabled, but excluding income you earned from employment with your employer; 3 any income which, in the Insurer s opinion, you could reasonably be expected to earn in your occupation while disabled; and 4 if super contributions cover applies, any benefits payable under other income protection insurance policies which replace in whole or in part the compulsory employer super entitlements you would have benefited from had you not been disabled. Any disability income described in paragraphs 1 or 2, which is paid to you as a lump sum or is exchanged for a lump sum will be reduced by the monthly equivalent of one sixtieth of the lump sum over a period of 60 months. Paragraph 3 does not apply when you are assessed as being able to return to work in a reduced capacity, and that work is unavailable with your employer. When does my monthly benefit stop? Continued payment of a monthly benefit during the benefit payment period is subject to the completion and outcomes of: regular medical reviews including compliance with any reasonable medical treatment or rehabilitation program; income reviews; and the approval of RBF and the Insurer (where applicable). You are responsible for the cost of all standard medical reports required for continued payment of Income Protection benefits. 28 Insurance in your super Fact sheet

31 Your Total Disability benefit starts the day after the waiting period has ended and will be paid until the earliest of the following events: you are no longer Totally Disabled; the end of benefit payment period; you reach age 65; your death; or a Terminal Illness or Total and Permanent Disablement benefit becomes payable to you. Your Partial Disability benefit starts the day after the waiting period has ended or the day after you are no longer Totally Disabled and will continue until the earliest of the following events: you are no longer Partially Disabled; the end of your benefit payment period; you reach age 65; your death; or a Terminal Illness or Total and Permanent Disablement benefit becomes payable to you. The benefit payment period that applies to your Income Protection cover, commences on the date that the waiting period is concluded. Additional important information about Income Protection cover Rehabilitation benefit In addition to the payment of your Income Protection benefit, the insurer may assist you with the payment of eligible rehabilitation expenses where those expenses are directly related to assisting you to return to work in a gainful occupation or undertake a vocational retraining program because of your disability. The payment of the rehabilitation expenses benefit is subject to a number of conditions including: 1 the insurer must approve the expenditure before it is incurred; 2 the costs will be paid directly to the provider; and 3 the maximum costs payable for any one disability is six times your monthly benefit. RBF and the Insurer (where applicable) will notify you during the on-going assessment of your Income Protection claim if particular rehabilitation treatments will qualify for the payment. What happens when you cease employment? If you have Basic Income Protection cover and you cease employment with your Tasmanian public sector employer, your Income Protection cover will automatically continue at its existing level on an opt-out basis for a period of four months, provided premiums continue to be paid. If your Basic Income Protection cover has a two year benefit payment period and a 90 day waiting period, you may, within 90 days of your cover ceasing, apply to maintain your Income Protection cover on existing terms and conditions. You can make this request by completing a Automatic cover application form, which is available on the RBF website at or you can request a copy of the form by calling the RBF Enquiry Line on The following conditions apply to your Automatic cover application including: you must be actively employed when applying to maintain your Income Protection cover; you will be required to provide occupational and limited health information; you must satisfactorily answer a series of standard questions; the amount of Income Protection cover applied for is the lesser of: the insured cover that applied to you on the date your Income Protection ceased; the insured cover that applies to your income from your new occupation; and if there were any limitation or restrictions applicable to your previous cover prior to ceasing employment, these limitations or restrictions would continue to apply. Insurance in your super Fact sheet 29

32 When your cover stops All Income Protection cover stops when one of the following events occurs (where the event is the earliest-occurring of any of the following): the RBF Investment Account has a nil balance for 30 continuous days; you reach age 65; you apply for and are accepted to receive a Terminal Illness or Total and Permanent Disablement benefit in which case, your cover stops on the date that your benefit becomes payable; you decide to cancel your cover with RBF and advise RBF in writing in this case, your insurance cover will stop on the day that RBF receives your written request; you join the armed forces (excluding the Australian Armed Forces Reserve); you cease to be a member of RBF; or you die. Your Basic Income Protection cover also stops when one of the following events occurs: four months after ceasing employment with your Tasmanian public sector employer; if you are on leave without pay for more than 12 months, in some circumstances, your cover will cease 12 months after your leave without pay commenced. Maximum benefit payment period The maximum benefit payment period for disability resulting from any one or related cause is the number of months in the benefit payment period. The number of months in the benefit payment period includes any months in which the benefit is reduced or is calculated to be zero. Maximum payment for disability outside Australia The maximum time in total the Insurer will pay an Income Protection benefit while you are outside Australia is six months. Leave without pay If you are on leave without pay at the date of disablement and you have insurance cover, benefit payments will not commence until after your specified return date that was approved by the employer before you went on leave. Premium waiver While you are an insured member your Income Protection premiums will be waived while an Income Protection benefit is paid or payable. Exclusions You will not be paid an Income Protection benefit if a sickness, injury or medical condition is directly or indirectly caused by: 1 your service in the armed forces of any country (whether voluntary or not), other than service in the Australian Armed Forces Reserve; 2 any war or act of war where war means any act of war (whether declared or not), revolution, invasion, rebellion or civil unrest; 3 any intentional self-inflicted act or attempted suicide (whether sane or not sane at the time of the intentional self-inflicted act or attempted suicide); or 4 normal pregnancy or childbirth where normal pregnancy or childbirth means normal and uncomplicated pregnancy or childbirth, including multiple pregnancy, caesarean birth, threatened miscarriage, participation in in-vitro fertilisation or other medically assisted fertilisation techniques and normal discomforts of pregnancy such as morning sickness, backache, varicose veins, ankle swelling and bladder problems; 5 you will not be paid a benefit if payment will cause the Insurer to infringe any legislation in connection with health insurance, including the Private Health Insurance Act 2007 (Cth). 30 Insurance in your super Fact sheet

33 General information Reinstatement of insurance cover Voluntary cessation of cover If you have chosen to stop your Death and Total and Permanent Disablement cover, Death only cover or Income Protection cover you can subsequently make an application for Voluntary Death and Total and Permanent Disablement cover, Voluntary Death only cover or Voluntary Income Protection cover, subject to acceptance by the Insurer. Involuntarily cessation of cover If your Death and Total and Permanent Disablement cover, Death only cover or Income Protection cover ceases because the balance of your RBF Investment Account is zero for more than 30 days, your cover can be reinstated if you satisfy one of the following conditions: Condition 1 If you: 1 were an eligible Tasmanian public sector employee who ceased employment with their Tasmania public sector employer; and 2 you subsequently recommenced employment with a Tasmanian public sector employer; and 3 your Tasmanian public sector employer pays a Superannuation Guarantee contribution to your RBF Investment Account within 180 days of your cover ceasing; then 4 your cover will be reinstated on the reinstatement date at your previous level of cover when it ended and any special conditions that applied to your cover will continue to apply to the reinstated cover; and 5 your cover reinstatement date is the later of: a the beginning of the pay period in which your Tasmanian public sector employer pays a Superannuation Guarantee contribution to your RBF Investment Account after you recommenced employment with your Tasmanian public sector employer; or b the day after the date your cover ceased; 6 if you were not in active employment at the time you recommenced employment with your Tasmanian public sector employer, your reinstated cover will be limited cover until you return to active employment for two consecutive months. Condition 2 If you: 1 make a contribution to your RBF Investment Account within 30 days of the date of the letter from RBF notifying you that your cover had ceased; and 2 the contribution is sufficient to pay your monthly insurance premium; then 3 your cover will be reinstated on the reinstatement date at your previous level of cover when it ended and any special conditions that applied to your cover will continue to apply to the reinstated cover; and 4 your cover reinstatement date is the date on which your contribution is credited to your RBF Investment Account. Please note the following important information All reinstatements of cover under Conditions 1 and 2 are subject to you having sufficient funds in your RBF Investment Account to pay the required monthly insurance premium. How do I claim benefits? You need to contact RBF and we will provide you with the appropriate forms for claiming insured benefits. In the case of a Terminal Illness, Total and Permanent Disablement claim or Income Protection claim you will usually be required to complete: a Claimant s Statement ; your medical practitioner or practitioners will be required to complete a Medical Attendants Statement in relation to your medical condition(s) at your cost; and once notified of your claim, your employer is required to complete an Employer Statement. What next? When we receive your completed application, we will lodge a claim for payment of insured benefits with our Insurer who will then assess your claim. The Insurer may (at its own expense) arrange for you to be examined by a registered medical practitioner and undertake other investigations in relation to your claim. In the event of your death, the claimant will be required to provide a Death Certificate and other supporting evidence. RBF assessment Your claim for any benefit under the Insurance Policies will be assessed by the Insurer. RBF will also independently assess your eligibility for payment of a Total and Permanent Disablement benefit, an Income Protection benefit or a Terminal Illness benefit. If necessary, RBF may also arrange for you to be examined by a registered medical practitioner at RBF s own expense. RBF s assessment will take into account: medical and other relevant information provided or obtained for the assessment of your claim for a benefit payment; the terms and conditions of the Group Life Insurance Policy or Group Income Protection Insurance Policy; and RBF Tasmanian Accumulation Scheme rules and government legislative requirements. Insurance in your super Fact sheet 31

34 RBF will notify you in writing of its preliminary decision. If you do not accept this decision, you must write to RBF within 21 days of receiving the notification. If you disagree with the preliminary decision you can apply to have it reviewed. If you have any additional information to support your application for review, you should provide this to RBF. You are responsible for the cost of any additional information. If, after the review, RBF confirms its preliminary decision, you can request a hearing before the RBF Board. Duty of disclosure The Trustee has a duty to disclose to the Insurer information about any matter that is relevant to the Insurer s decision whether to accept your insurance cover and, if so, on what terms. You have the same duty to disclose these matters to the Insurer before you extend, vary or reinstate your insurance cover. However, the duty of disclosure does not require disclosure of a matter: that diminishes the to be undertaken by the Insurer; that is common knowledge; that your Insurer knows, or ought to know, in the ordinary course of its business; or where your duty is waived by the Insurer. Your duty of disclosure continues until you receive written confirmation your application has been accepted or declined. You must contact the Insurer if there is any change in your health or circumstances that are relevant to the Insurer s decision on your application. Non-disclosure If you fail to comply with your duty of disclosure and the Insurer would not have provided insurance cover to you on any terms if the failure had not occurred, the Insurer may avoid payment of your insured benefit An Insurer who is entitled to avoid payment of your insurance benefit may, within three years of entering into the cover, elect not to avoid payment but to reduce the amount of your insured benefits in accordance with a formula that takes into account the premiums that would have been payable if you had disclosed all relevant matters to the Insurer. Where the Insurer for any reason limits, restricts or refuses to consider, defers or denies an insurance claim in whole or in part, RBF may adjust your insured benefit to take account the reduction or non-payment of insurance proceeds. Stay informed It s important to make sure that your insurance cover suits your personal needs and circumstances. If you would like assistance with making a decision about your insurance cover or even personal financial advice, please contact RBF Financial Planning for an appointment on Please be aware that a fee may apply for financial advice. However, RBF Financial Planners do not receive commissions. RBF Financial Planning Pty Ltd (ABN , AFS Licence No ) is a wholly owned subsidiary of the RBF Board and operates as a separate legal entity. The Insurance Policy governs your entitlement to insured benefits The insurance information contained in this Fact sheet aims to provide you with important information on the insurance cover arrangements that apply in the RBF Tasmanian Accumulation Scheme. The terms and conditions relating to insurance cover for the RBF Tasmanian Accumulation Scheme are set out in the Insurance Policies issued by the Insurer to RBF. Whilst every effort has been made to ensure that the information contained in this Fact sheet regarding insurance benefits in the RBF Tasmanian Accumulation Scheme is accurate, the terms and conditions of the relevant Insurance Policies held with the Insurer will prevail to the extent that they are inconsistent with the information contained in this Fact sheet. Privacy We hold your personal information securely and use it only for the purposes described in the RBF Privacy Policy, available on the RBF website at If you would like a copy or if you would like to access or update the personal information we hold about you, please contact our Privacy Officer on (03) Complaints At RBF, we strive to ensure our members receive the best possible service at all times, but sometimes our service might not meet your expectations. For this reason, RBF has a comprehensive complaint process to address member concerns. Members who may be unhappy with the way RBF has handled a matter are encouraged to contact the RBF Enquiry Line on and explain their concerns. Where the member s concerns have not been addressed, they can write to: RBF Complaints Officer Retirement Benefits Fund Reply Paid 446 HOBART TAS 7001 If you are not satisfied with our decision or the way we have handled a matter, you can lodge a complaint with the Tasmanian Ombudsman by calling or visit their website 32 Insurance in your super Fact sheet

35 Glossary Here is a summary of terms referred to in this Fact sheet that have special meanings: Term Active employment 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 Definition You are in active employment if you are employed (including being on fully paid leave except leave that is caused by sickness or injury) by an employer to carry out identifiable duties and in the Insurers and RBF s opinion you are not restricted by sickness or injury from carrying out the identifiable duties of your normal occupation on a full-time basis (for at least 30 hours per week) even if the person is not working on a full-time basis. Condition of impaired ventricular function of variable aetiology (often not determined) resulting in significant physical impairment, i.e. Class 3 on the New York Heart Association classification of cardiac impairment. Primary pulmonary hypertension associated with right ventricular enlargement established by cardiac catheterisation resulting in significant permanent physical impairment to the degree of at least Class 3 of the New York Heart Association classification of cardiac impairment. Injury to the head resulting in neurological deficit causing either: 1 a permanent loss of at least 25% whole person function (as defined in the American Medical Association publication, Guides to the Evaluation of Permanent Impairment, 4th Edition or an equivalent guide to the evaluation of impairment approved by us); or 2 the permanent and irreversible inability to perform without the assistance of another person any one of the following activities of daily living: i dressing the ability to put on and take off clothing; ii toileting the ability to use the toilet, including getting on and off; iii mobility the ability to get in and out of bed and a chair; iv continence the ability to control bowel and bladder function; v feeding the ability to get food from a plate into the mouth; as certified by a consultant neurologist. Motor Neurone Disease diagnosed by a consultant neurologist. The unequivocal diagnosis of Multiple Sclerosis as confirmed by a consultant neurologist and characterised by demyelination in the brain and spinal cord evidenced by Magnetic Resonance Imaging or other investigations acceptable to us. There must have been more than one episode of well-defined neurological deficit with persisting neurological abnormalities. The unequivocal diagnosis of muscular dystrophy by a consultant neurologist. The permanent loss of use of both legs or both arms, resulting from spinal cord illness or injury. The permanent loss of use of both arms and both legs resulting from spinal cord illness or injury. The total loss of function of one side of the body due to illness or injury, where such loss of function is permanent. The total loss of function of both sides of the body due to illness or injury where such loss of function is permanent. The total and permanent loss of use of both arms and both legs, together with loss of head movement, due to brain illness or injury or spinal cord illness or injury. Clinical diagnosis of dementia (including Alzheimer s disease) as confirmed by a consultant neurologist, psychogeriatrician, psychiatrist or geriatrician. The diagnosis must confirm permanent irreversible failure of brain function resulting in significant cognitive impairment for which no other recognisable cause has been identified. Significant cognitive impairment means a deterioration in the person s Mini-Mental State Examination scores to 24 or less and deterioration would continue but for any effective treatment. Dementia related to alcohol, drug abuse or AIDS is excluded. The unequivocal diagnosis of Parkinson s disease by a consultant neurologist where the consultant neurologist confirms that the condition: a is the established cause of two or more of the following: a muscular rigidity; b resting tremor; c bradykinesia; and b has caused significant progressive physical impairment, likely to continue progressing but for any treatment benefit. The person must be following the advice and treatment of a specialist neurologist. Insurance in your super Fact sheet 33

36 Blindness Loss of speech Loss of hearing Chronic lung disease Severe Rheumatoid Arthritis The permanent loss of sight in both eyes, whether aided or unaided, due to illness or injury to the extent that visual acuity is 6/60 or less in both eyes or to the extent that the visual field is reduced to 20 degrees or less of arc, as certified by an ophthalmologist. The total and irrecoverable loss of the ability to produce intelligible speech as a result of permanent damage to the larynx or its nerve supply or the speech centres of the brain. The loss must be certified by an appropriate medical specialist. Complete and irrecoverable loss of hearing, both natural and assisted, from both ears as a result of illness or injury, as certified by a specialist we consider appropriate. Permanent end stage respiratory failure with FEV1 test results of consistently less than one litre, requiring continuous permanent oxygen therapy. The unequivocal diagnosis of Severe Rheumatoid Arthritis by a Rheumatologist. The diagnosis must be supported by, and evidence, all of the following criteria: a at least a six week history of Severe Rheumatoid Arthritis which involves three or more of the following joint areas: a proximal interphalangeal joints in the hands; b metacarpophalangeal joints in the hands; c metatarsophalangeal joints in the foot, wrist, elbow, knee or ankle; b simultaneous bilateral and symmetrical joint soft tissue swelling or fluid (not bony overgrowth alone); c typical rheumatoid joint deformity and at least two of the following criteria: a morning stiffness; b rheumatoid nodules; c erosions seen on X-ray imaging; or d the presence of either a positive rheumatoid factor or the serological markers consistent with the diagnosis of Severe Rheumatoid Arthritis. Degenerative osteoarthritis and all other arthritidies are excluded. Contacting RBF Contact RBF if you would like additional information or assistance. RBF Enquiry Line: or (international) Visit: Fax: (03) or (international) Write: RBF, Reply Paid 446, Hobart TAS 7001 Office: Ground Floor, 21 Kirksway Place, Hobart Ground Floor, Cimitiere Street, Launceston AC/B/00224 (V10-07/15) Issued by Retirement Benefits Fund Board ABN as Trustee for Retirement Benefits Fund (RBF) ABN RBF19029_InsuranceInYourSuper_Factsheet_update_0615_FA 34 Insurance in your super Fact sheet