BT Financial Group has become the latest superannuation fund to adopt the Insurance in Superannuation Voluntary Code (the Code) for super trustees, and would implement the new standards.
BT general manager of superannuation, Melinda Howes, said that as a founding member of the Insurance in Superannuation Working Group, BT had worked through the Code in detail and believed its implementation would benefit super fund members.
“It’s important that super funds adopt these standards. We also support further industry-led initiatives to make the Code binding to ensure all members get the benefit of these additional protections,” said Howes.
Howes acknowledged that, under the Code, a member’s insurance cover could be cancelled if no super contributions were made to their account for 13 months, and noted that this would predominantly affect women with parenting responsibilities.
“A person may be on parental leave for up to two years but insurance cover may be cancelled after 13 months of no super contributions to their account,” she said. “It’s important that anyone who has taken a break from the workforce can regain access to their default insurance cover.”
Despite this, Howes said it wouldn’t be beyond the industry’s ability to resolve this and other issues to ensure that the Code does not leave members worse off.
The implementation of the Code was supported by BT’s life insurance branch, with general manager, Sue Houghton, ensuring it would bring the right balance between providing cover and protecting members’ superannuation savings.
“We support the Code and believe it will further help Australians gain access to appropriate and affordable cover and make better informed decisions about their insurance in superannuation,” said Houghton.
