Important change – TPD definition changes from 1 July 2014
This is a change to the definition of TPD for contributing members who receive a default TPD cover on or after 1 July 2014 and who then make a benefit claim on invalidity grounds, you will be assessed against a modified definition of TPD. The reason for this change is to satisfy new regulatory requirements that govern the insurance cover which can be offered through superannuation funds.
If you have existing TPD cover as at 30 June 2014 and if you make a claim, your cover is not affected by this change of definition. The same applies if you wish to apply for additional levels of cover and are accepted, if you claim, you will not be affect by this change.
Please note if you have chosen to cancel or opt out of TPD cover completely and are reapplying for TPD cover from 1 July 2014 and are accepted, you will be subject to the new definition for TPD.
Preserved and Ancillary members are not eligible for insurance cover at this time. However, if you have recently returned to eligible employment, you may have received a default level of basic Death and TPD cover.
You can confirm your cover by logging into PSSap Member Online, viewing your enclosed annual Member Statement or contacting us.
Modified definition to be applied to insured members accepted for TPD cover on or after 1 July 2014
The following paragraph will apply to parts (a) and (c) of the TPD definition:
‘and, in all cases, after consideration of all medical and other evidence as The Company may require, the Insured Member has become incapacitated to such an extent as to render him or her unlikely ever to be able to engage in his or her own occupation and any occupation for which he or she is reasonably suited by education, training or experience.’
Part (b) of the TPD definition remains unchanged. These sections can be viewed by downloading the PSSap PDS including the Insurance and your PSSap super booklet from pssap.gov.au