Government legislation requires LGIAsuper to cancel insurance on accounts that haven't received a contribution or rollover for a continuous period of 16 months.
This is the time period the Government considers a superannuation account to be inactive. Members with an inactive account are given the option of keeping their insurance before it is cancelled.
This legislation aims to protect superannuation balances by ensuring that members have insurance arrangements that are suitable for them. It came into effect from 1 July 2019 as part of the Federal Government’s Protecting Your Superannuation Package.
During the months leading up to cancellation of insurance, LGIAsuper will notify an inactive member by email or letter. This will give them the opportunity to keep their insurance.
These notifications will be sent at 9, 12 and 15 months since the last contribution or rollover. Confirmation to keep insurance can be done quickly and easily online – details are included in notifications sent to members.
If an account continues to be inactive, insurance cover will be automatically cancelled. LGIAsuper will notify members when this happens. Insurance cover can be reinstated, details will be included in a member’s email or letter.
If you are an LGIAsuper member, you will want to receive important account updates wherever you are working. It is a good idea to use your personal email address for LGIAsuper notifications, instead of your work email address.
LGIAsuper members can update their insurance online at any time. Login to your account via the button at the top-right corner of this website.
If you have any questions about this new legislation, you can contact us on 1800 444 396.
Further information is also available on the Government’s MoneySmart website