REST Industry Super today announced it will become a signatory to the Insurance in Superannuation Working Group Code of Practice for superannuation trustees, significantly increasing the number of Australians covered by the Code.
The Code of Practice would enhance communications and claims handling and help stop insurance premiums eroding account balances.
REST interim chief executive, Andrew Howard, said that the Code struck an appropriate balance between protecting the interests of a diverse member base and allowing super trustees to design appropriate insurance.
He said that signing the Code was in line with the fund’s recent insurance redesign, which saw default cover for new members under 18 removed and total and permanent disablement cover reduced for new members aged 18-34.
REST would publish plans and a timeline for implementing the Code on the fund’s website in accordance with the Code, which would come into effect from July 2018.
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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