Australia

Default Superannuation Changes

Will your employees be left without death and disability insurance?

Superannuation has undergone many changes in recent years. Now, with the introduction of the Your Future, Your Super legislation, it’s even more important for employers to understand how these changes could impact their insurance offering to employees.

47% of HR professionals don’t know, or feel unsure about, the implications of ‘super stapling’ on their organisation^


The Your Future, Your Super legislation, introduced in July 2021, means your new employees will no longer automatically join your default super fund or receive the attached death and disability insurance cover.

Instead, employees' existing super fund will follow them from one employer to another unless they actively opt-in to your default. As a result, some employees may not receive the death and disability insurance cover offered through your default super fund if they remain with their previous employer’s fund.
 
Employers who currently offer insurances inside super as part of an overall financial wellbeing strategy may need to consider the implications of not all employees being inside their default fund. The risk being that employers do not have oversight on whether employees outside their default fund hold appropriate insurances, or the extent to which their employees’ entitlements to death and disability insurance are harmonised.
 
Aon can help you build an attractive and inclusive insurance benefits program that meets your goal of keeping people financially well and productive, and providing you with the comfort of knowing your employees are covered. We’ll assist in identifying appropriate insurance placement solutions for your workplace, managing the transition and providing ongoing administrative and technical support.

^ Aon’s 2021 Superannuation and Financial Wellbeing Survey, October 2021.
 


Learn More


Guide to Superannuation and Default Insurances 

Erosion of Death & Disability Cover in Super 

Super Stapling Article - Aon Insights 


Contacts  

Marisa Breytenbach 
Client Manager - Health & Benefits 
02 9253 7321
0412 442 885

Matthew Brown 
Client Manager - Health & Benefits 
02 9253 8257 
0405 384 154