From 1 July 2008, not-for-profit organisations must offer minimum levels of life insurance death cover to members in the employer-nominated super funds. The employer-nominated super fund is the fund into which an employer chooses to pay an employees superannuation guarantee contributions if the employee does not nominate another fund.
Employers must ensure that the employer-nominated super fund is a complying fund and it offers the minimum insurance cover.
Employer-nominated super funds must offer minimum life insurance for members (under 56 years of age) at a premium of at least 50c. per week with a cover at least commensurate with the levels in the following table. Equivalent cover must also be available if contributions are made to a defined benefit fund.
|0 to 19||Nil|
|20 to 34||$50,000|
|35 to 39||$35,000|
|40 to 44||$20,000|
|45 to 49||$14,000|
|50 to 55||$7,000|
The following exceptions apply if the employer:
|is making contributions under a federal award|
|arranges insurance cover for employees outside the super system that includes death cover. That cover must be at least equivalent to the minimum insurance requirements.|
|is unable to obtain insurance because an employee has health, occupation or hours worked issues, or|
|contributes to a fund whose governing rules were in place on 11 March 2005 and determined that an amount not less than $50,000 will be payable in respect of the death of an employee.|