Introduction of insurance rebate

The Scheme offers members access to death and permanent incapacity insurance, and all new members are automatically accepted if they join the Scheme within six months of starting work with their employer, and are at work doing normal duties on the date they join the Scheme. However, eligibility requirements in the insurer’s policy and the Scheme’s Trust Deed mean some members are not eligible to receive this insurance cover. Insurance is currently priced as a collective flat rate, rather than applying premiums to specific members. From 1 July 2020, uninsured Scheme members will be allocated a regular rebate to their Scheme account balances. This rebate amount will be based on the insurance cost assumption for each relevant regular month. Members are not eligible to opt out of receiving insurance cover.

Frequently asked questions

Who is eligible for this insurance rebate?

Only members who are not eligible for insurance cover, and therefore uninsured with the Scheme, are eligible for this insurance rebate. This may include:

• Individual members;
• If a member reaches age 65 (when insured benefits cease);
• If a member joins outside of the 6-month initial window for automatic cover;
• If a member ceases contributions and then recommences after at least 18 months (taking them outside of the 18-month window for automatic reinstatement of cover);
• If members have had underwriting completed but AIA has declined cover.

When is the rebate processed?

At the end of each month, when declared interest rates are being applied within the Scheme’s administration system to member accounts, uninsured members will have a rebate amount credited to their account balances.

How much is the rebate?

This rebate amount will be based on the insurance cost assumption for each relevant regular month.

Will the rebate be shown on my statement?

Yes. This rebate will show up as a separate line on your members statement and will be specifically identifiable.

Why are members given this rebate?

The Scheme offers members access to death and permanent incapacity insurance, however eligibility requirements in the insurer’s policy and the Scheme’s Trust Deed mean some members are not eligible to receive this insurance cover. Insurance is currently priced as a collective flat rate, rather than applying premiums to specific members. From 1 July 2020, uninsured Scheme members will be allocated a regular rebate to their Scheme account balances.